SHFE zinc opened lower with a gap, dragged down by the prospect of reciprocal tariffs. [SMM Zinc Morning Comment]

Overnight, Trump imposed a "minimum benchmark tariff" on all countries and will levy reciprocal tariffs; it is reported that Trump is seriously considering indirect nuclear negotiations with Iran; the US Treasury Secretary stated that the Ukrainian delegation may arrive in the US as early as this week; Tesla's Q1 deliveries plummeted, marking the worst quarterly performance since 2022; the General Office of the CPC Central Committee and the State Council issued the "Opinions on Improving the Price Governance Mechanism"; A-share new accounts in Q1 increased by 31.74% YoY; the Eastern Theater Command successfully completed joint exercises around Taiwan Island.

Overnight, LME zinc opened at $2,821.5/mt, with shorts exiting at the start, pushing the center higher to $2,837/mt. During European trading hours, shorts increased positions, causing LME zinc to plunge to $2,773.5/mt in the night session. Subsequently, the center moved higher, closing down at $2,790/mt, a drop of $26.5/mt, or 0.94%, with trading volume falling to 12,931 lots and open interest increasing by 1,662 lots to 225,000 lots. Overnight, LME zinc recorded a large bearish candle, with the 5/10 daily averages forming resistance. Market concerns over the economic damage from reciprocal tariffs intensified, with fears of a US recession dragging down non-ferrous metals, and LME zinc's center moved lower. Trump signed an executive order imposing a 10% "minimum benchmark tariff" on all countries and will levy reciprocal tariffs, with LME zinc expected to fluctuate downward.

Overnight, the most-traded SHFE zinc 2505 contract opened lower with a gap at 23,205 yuan/mt, with shorts increasing positions at the start, causing SHFE zinc to break below the daily average and consolidate at 23,140 yuan/mt, briefly touching a low of 23,135 yuan/mt. Subsequently, the center moved higher, closing down at 23,190 yuan/mt, a drop of 190 yuan/mt, or 0.81%, with trading volume falling to 64,845 lots and open interest increasing by 1,555 lots to 112,000 lots. Overnight, SHFE zinc recorded a large bearish candle, with the lower Bollinger Band forming resistance. Macro front, the market is still awaiting details on reciprocal tariffs, while fundamental consumption shows no significant increase, and supply remains loose, with SHFE zinc declining, expected to fluctuate downward in the short term.