Last Friday, LME zinc opened at $3,074.5/mt. In early trading, it extended its rise along the daily average and climbed to a high of $3,125/mt. Subsequently, as bulls took profits and exited, LME zinc fell all the way and touched a low of $3,071/mt near the night session. As bears reduced positions and exited, LME zinc rose again, with its center moving up to around $3,110/mt, and finally closed higher at $3,106.5/mt, up $33/mt, or 1.07%. Trading volume decreased to 9,425 lots, and open interest fell by 1,767 lots to 209,000 lots. Last Friday, LME zinc recorded a small bullish candlestick, with the 10-day average above forming resistance. Although there was still a risk of escalation in the geopolitical conflict in the Middle East last Friday and macro sentiment was weak, concerns over mine-side energy supply arising from such escalation also increased, lending strength to zinc prices.
Last Friday, the most-traded SHFE zinc 2605 contract opened lower with a gap at 23,250 yuan/mt. In early trading, SHFE zinc quickly moved lower to a low of 23,190 yuan/mt. Subsequently, increased long positions by bulls pushed SHFE zinc all the way up to a high of 23,415 yuan/mt, after which its center edged slightly lower. It finally closed higher at 23,370 yuan/mt, up 115 yuan/mt, or 0.49%. Trading volume decreased to 3,354 lots, and open interest fell by 331 lots to 100,000 lots. Last Friday, SHFE zinc recorded a five-day winning streak, with the 5/10-day averages below providing support. In April, routine maintenance at smelters increased, and inventory continued destocking, improving zinc fundamentals, but weak macro sentiment capped its gains.
Data source statement: Except for public information, all other data is processed and derived by SMM for reference only, based on public information, market communication, and SMM's internal database models, and does not constitute decision-making advice.
