Overseas Market Decline Drags SHFE Zinc to Fluctuate Downward [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,956/mt. After a brief dip at the beginning of the session, increased long positions pushed it to a high of $2,974/mt. During the European trading hours, profit-taking by longs led LME zinc to fluctuate downward. Entering the night session, the decline accelerated, hitting a low of $2,914.5/mt. By the end of the session, the center fluctuated around $2,925/mt, closing down at $2,927.5/mt, a decrease of $32.5/mt or 1.1%. Trading volume decreased to 11,549 lots, and open interest fell by 3,832 lots to 222,000 lots. Overnight, LME zinc recorded a third consecutive bearish candlestick, with the daily candlestick center shifting downward, while the 20-day moving average below provided support. The overnight US Fed meeting met expectations by maintaining the status quo, and the US dollar index jumped initially and then pulled back. Coupled with the exit of long funds, LME zinc fluctuated downward.

Overnight, the most-traded SHFE zinc 2505 contract opened lower with a gap at 23,840 yuan/mt. The influx of short funds caused SHFE zinc to fluctuate downward, with the center operating below the daily average line. During the session, it hit a low of 23,710 yuan/mt and eventually closed down at 23,750 yuan/mt, a decrease of 90 yuan/mt or 0.38%. Trading volume decreased to 70,295 lots, while open interest increased by 4,737 lots to 128,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with resistance formed by various moving averages above. Dragged down by the decline in the overseas market and the continued drop in ferrous metals prices, SHFE zinc fluctuated downward overnight. However, the absence of significant inventory buildup in the social inventory limited the decline in zinc prices.