Fundamentals Coupled With Macro Factors Kept SHFE Zinc Hovering at Highs [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,336.5/mt. In early trading, LME zinc fluctuated upward, touching an intraday high of $3,386/mt. Prices then pulled back to a low of $3,323.5/mt, before edging up slightly into the close to finish at $3,342/mt, up $16/mt, or 0.48%. Trading volume decreased to 98,167 lots, and open interest fell by 254 lots to 216,000 lots. Overnight, LME zinc recorded a long upper-shadow bullish candlestick, with the upper Bollinger Bands capping gains above and the lower Bollinger Bands providing support below. Last night, easing inflation concerns lifted LME zinc, but the market was weighing Trump's conflicting messages on Iran, while the US dollar maintained fluctuating trend, limiting LME zinc's upward momentum and prompting a pullback.

Overnight, the most-traded SHFE zinc 2604 contract opened at 24,460 yuan/mt. In early trading, increased long positions pushed prices up to 24,500 yuan/mt, after which SHFE zinc moved lower to a low of 24,385 yuan/mt. Near the close, longs reduced positions and exited, sending SHFE zinc slightly lower. It finally closed at 24,425 yuan/mt, up 10 yuan/mt, or 0.04%. Trading volume decreased to 31,673 lots, and open interest increased by 433 lots to 75,180 lots. Overnight, the SHFE zinc 2604 contract posted a small bearish candlestick, with the middle Bollinger Band forming resistance above and the lower Bollinger Band providing support below. Fundamentally, domestic supply remains relatively loose, downstream consumption is gradually recovering, and macro uncertainty persists, so SHFE zinc maintained a fluctuating trend.

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