SMM Zinc Market Morning Comment (Jul 15)

Last Friday, LME zinc opened at $2,954.5/mt, hitting a low of $2,911/mt, moving up to around $2,945/mt by the end of the trading session, and finally closed lower at $2,949/mt, down $2.5/mt, a decrease of 0.08%. Trading volume decreased to 7,702 lots, and open interest decreased by 3,097 lots to 236,000 lots. Last Friday, LME zinc recorded a long lower shadow bearish candlestick, with the middle Bollinger Band providing support below. LME zinc inventory continued to decrease by 2,175 mt to 251,125 mt, a drop of 0.86%. Last Friday, the US CPI and PPI data diverged, leading to a deadlock between bullish and bearish sentiment, with LME zinc maintaining its fluctuations.

Last Friday, the most-traded SHFE 2409 zinc contract opened at 24,165 yuan/mt, quickly dipping to 24,120 yuan/mt, then moving up to around 24,350 yuan/mt, reaching a high of 24,400 yuan/mt by the end of the trading session, and finally closed at 24,395 yuan/mt, up 45 yuan/mt, an increase of 0.18%. Trading volume decreased to 48,949 lots, and open interest decreased by 614 lots to 81,164 lots. Last Friday, SHFE zinc recorded a bullish candlestick, but the daily K-line moved up, with the middle Bollinger Band providing support below. On the domestic fundamentals, zinc concentrate TC was further reduced, indicating continued tight supply. However, the impact of the off-season for consumption persisted, leading to zinc prices maintaining their fluctuations.