SHFE Zinc Recorded a Small Bearish Candle with Prices Mainly Fluctuating at Low Levels [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,869.5/mt. In early trading, LME zinc fluctuated around the daily moving average before its center shifted downward to test a low of $2,845.5/mt. During European trading hours, the center moved upward to $2,880/mt, reaching a high of $2,888/mt during the night session. By the end of the session, the center pulled back, closing down at $2,868.5/mt, a decrease of $7.5/mt or 0.26%. Trading volume increased to 11,145 lots, while open interest decreased by 1,792 lots to 217,000 lots. Overnight, LME zinc formed a doji candlestick, with the 5-day moving average providing support below and the 10-day moving average acting as resistance above. Overnight PPI data unexpectedly came in lower than anticipated, the US dollar index declined, but most commodities entered a holiday period, with prices fluctuating downward as the main trend.

Overnight, the most-traded SHFE zinc 2502 contract opened at 24,155 yuan/mt. After an initial tug-of-war between longs and shorts, the bulls gained the upper hand, pushing the price to a high of 24,255 yuan/mt. Subsequently, increased short positions caused the center of SHFE zinc to shift downward, closing down at 24,155 yuan/mt, a decrease of 15 yuan/mt or 0.06%. Trading volume decreased to 51,711 lots, while open interest decreased by 998 lots to 94,145 lots. Overnight, SHFE zinc formed a bearish candlestick, with various moving averages above acting as resistance. Downstream sectors are gradually entering the holiday period, and processing fees continue to rebound, leading zinc prices to primarily oscillate at low levels.