Concerns over consumption persist, SHFE zinc lacks upward momentum [SMM Morning Comment]

SMM April 24 News:

Overnight, LME zinc opened at $2,606/mt. At the beginning of the session, SHFE zinc tested a low of $2,606/mt. After opening, SHFE zinc fluctuated around the daily average line, then fluctuated upward during the night session, reaching a high of $2,677.5/mt before LME zinc fell back to near the daily average line, finally closing up at $2,635.5/mt, up $34.5/mt, a gain of 1.33%. Trading volume increased to 13,891 lots, and open interest rose by 627 lots to 202,000 lots. Overnight, LME zinc recorded a bullish candlestick, with the 5-day moving average providing support below. Yesterday, the Antamina copper-zinc mine experienced an unexpected accident and halted production, reigniting disturbances in the overseas ore sector. Additionally, recent macro sentiment has eased, leading to a rebound in LME zinc from low levels, with the center slightly shifting upward.

Overnight, the most-traded SHFE zinc 2506 contract opened at 22,550 yuan/mt. At the beginning of the session, SHFE zinc slightly rose to a high of 22,640 yuan/mt, then pulled back from highs and fluctuated below the daily average line, testing a low of 22,450 yuan/mt, finally closing up at 22,465 yuan/mt, up 5 yuan/mt, a gain of 0.02%. Trading volume decreased to 99,828 lots, and open interest increased by 478 lots to 128,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the 40-day moving average forming resistance above. The macro recovery provided some support to zinc prices, but market concerns about downstream consumption persisted, leaving SHFE zinc with insufficient upward momentum and maintaining a fluctuating trend.