SMM Zinc Market Morning Comment (Jul 4)

Overnight, LME zinc opened at $2,924.5/mt, briefly dipping to $2,920/mt, then reaching a high of $3,005.5/mt, and finally closed at $2,983/mt, up $64/mt, an increase of 2.13%. Trading volume increased to 10,161 lots, and open interest decreased by 5,012 lots to 233,000 lots. Overnight, LME zinc recorded a large bullish candlestick, with LME zinc inventory reduced by 750 mt to 259,025 mt, a decrease of 0.29%. Macro sentiment was bullish, with US economic data showing signs of weakening, reigniting expectations of interest rate cuts. The US dollar weakened, and non-ferrous metals prices generally rose. It is expected that LME zinc will run strong today.

Overnight, the most-traded SHFE 2408 zinc contract opened at 24,735 yuan/mt, briefly dipping to 24,605 yuan/mt, then reaching a high of 24,790 yuan/mt, and finally closed at 24,690 yuan/mt, up 135 yuan/mt, an increase of 0.55%. Trading volume decreased to 62,408 lots, and open interest increased by 508 lots to 90,640 lots. Overnight, SHFE zinc recorded a bearish candlestick. The US economic data was lower than expected. Non-ferrous metals prices generally rose, with the center of SHFE zinc shifting upwards. SHFE zinc is expected to run strong today.