Overnight, LME zinc opened at $3,535/mt, briefly dipped to a low of $3,520.5/mt in early trading, then climbed all the way to hit a high of $3,600/mt during the night session before profit-taking caused the center to decline. It eventually closed up at $3,546/mt, up $11.5/mt or 0.33%. Trading volume increased to 15,243 lots, while open interest decreased by 562 lots to 234,000 lots. Overnight, LME zinc recorded a small bullish candlestick. Heightened expectations for a Fed rate hike this year and the US strike on Iran put funds in a stalemate at high levels, leaving LME zinc to predominantly fluctuate with its center edging slightly higher.
Overnight, the most-traded SHFE zinc 2607 contract opened higher with a gap at 24,885 yuan/mt, briefly rose to touch a high of 24,945 yuan/mt, then saw bulls reduce positions and fluctuated downward, dipping to a low of 24,670 yuan/mt near the end of the session. It eventually closed down at 24,730 yuan/mt, down 30 yuan/mt or 0.12%. Trading volume decreased to 66,029 lots, and open interest decreased by 463 lots to 89,434 lots. Overnight, SHFE zinc recorded a large bearish candlestick. Geopolitical turmoil resurfaced. Amid a tight ore supply and loose metal supply environment, SHFE zinc continued to fluctuate. A turning point for destocking in social inventory has not yet been observed. SHFE zinc closed slightly lower, and it is expected to fluctuate today.
Data Source Statement: All data other than publicly available information are processed by SMM based on public information, market communication, and SMM’s internal database models. They are for reference only and do not constitute investment advice.
