Zinc supply remains loose, SHFE zinc maintains fluctuating trend [[SMM Zinc Morning Comment]]

SMM, May 8:

Overnight, LME zinc opened at $2,638/mt. In the early session, LME zinc rose to a high of $2,658/mt before quickly pulling back and entering a fluctuating trend. During the mid-session, LME zinc rebounded again above the daily average line, but declined again towards the end of the session, hitting a low of $2,613/mt. It eventually closed down at $2,613/mt, down $13.5/mt or 0.51%. Trading volume decreased to 10,498 lots, while open interest increased by 2,309 lots to 211,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the upper Bollinger Band forming resistance. The market remained cautious about the international trade situation, with no significant improvement in macro sentiment. Additionally, the US dollar index continued to strengthen, putting downward pressure on LME zinc.

Overnight, the most-traded SHFE zinc 2506 contract opened at 22,245 yuan/mt. In the early session, SHFE zinc quickly surged to a high of 22,455 yuan/mt before continuously pulling back from the highs. It hit a low of 22,210 yuan/mt during the night session and then maintained a fluctuating trend. It eventually closed up at 22,240 yuan/mt, up 30 yuan/mt or 0.14%. Trading volume decreased to 80,117 lots, while open interest increased by 5,163 lots to 122,000 lots. Overnight, SHFE zinc recorded a long upper shadow bearish candlestick, with the 10-day moving average forming resistance. With the inflow and replenishment of imported zinc ingots, the market's expectation for loose zinc ingot supply persisted, while consumption performance was mediocre. The fundamentals provided insufficient support for zinc prices, and SHFE zinc maintained a fluctuating trend.