SMM Zinc Market Morning Comment (Apr 30)

Overnight, LME zinc prices continued to rise, finding support at the moving average. LME zinc inventory increased by 950 mt to 255,400 mt, up 0.37%. The weak US dollar overnight led to a general rise in non-ferrous metals, with zinc leading the way in gains. The news of production cuts at the ore end was confirmed, providing sufficient momentum for LME zinc price hikes. Therefore, LME zinc prices are expected to continue to rise. SHFE zinc prices moved up overnight, but met resistance at the upper end of the Bollinger Bands. Driven by LME zinc, SHFE zinc prices hit the highest level in nearly a year, but it is recommended to operate with caution since fund changes are relatively frequent before the holiday.