A large amount of overseas zinc was transferred to delivery warehouses, and bearish funds suppressed zinc prices. [SMM Morning Comment on Zinc]

Overnight, LME zinc opened at $2,621.5/mt. At the beginning of the session, LME zinc briefly consolidated around the daily average line before bulls took profits and exited, leading to a stepwise decline. During the European trading session, it touched a low of $2,545/mt, then rebounded upward. By the end of the session, the center shifted above the daily average line, closing down at $2,577.5/mt, a decrease of $36.5/mt, or 1.4%. The trading volume increased to 13,768 lots, while the open interest decreased by 4,932 lots to 210,000 lots. Overnight, LME zinc recorded a bearish candlestick with no upper shadow, with the 5/10 daily average lines forming resistance. Affected by economic uncertainty and a significant increase in LME zinc inventory by nearly 80,000 mt, zinc prices fell sharply.

Overnight, the most-traded SHFE zinc 2506 contract opened lower with a gap at 21,850 yuan/mt. At the beginning of the session, SHFE zinc briefly declined to a low of 21,775 yuan/mt before rebounding upward, with the center operating above the daily average line. It touched a high of 21,970 yuan/mt, eventually closing down at 21,895 yuan/mt, a decrease of 245 yuan/mt, or 1.11%. The trading volume decreased to 83,695 lots, while the open interest increased by 3,194 lots to 130,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick, but the daily candlestick center shifted downward. Overnight, influenced by a large overseas transfer to delivery warehouse and increased consumption uncertainty due to tariffs, bearish funds entered the market, and zinc prices remained in the doldrums.