SHFE Zinc Opened Lower and Trended Downward [SMM Zinc Morning Comment]

Overnight, US job openings in April fell to their lowest level since 2021. The Bank of Japan is reportedly considering discussing a reduction in bond purchases. Hamas leaders are said to have rejected a new Gaza ceasefire proposal. The National Democratic Alliance led by India's ruling party won the election. The Chinese People's Political Consultative Conference discussed building a high-level socialist market economy system. The China Securities Regulatory Commission will release capital market-related policy measures during the 2024 Lujiazui Forum. Shenzhen clarified that existing mortgage rates will not be adjusted.

Overnight, LME zinc opened at $2,947.0/mt, fluctuated upward to a high of $2,984.0/mt, and hitting a session low of $2,905.0/mt, and finally closing lower at $2,925.0/mt, down by $12/mt or 0.41%. Trading volume reduced to 10,000 lots, and open interest reduced by 3,251 lots to 243,000 lots. LME zinc inventory decreased by 1,325 tons to 254,600 tons, down by 0.52%. US April JOLTs job openings and factory orders data both indicated a weak US economy, weakening macro sentiment and causing LME zinc to fluctuate weakly.

Overnight, the most-traded SHFE zinc contract opened at ¥24,260/mt, peaked at ¥24,270/mt, then fluctuated widely around the daily average amid a tug-of-war between bulls and bears, hitting a session low of ¥24,030/mt, then slightly rebounded to fluctuate around ¥24,160/mt, and finally closed lower at ¥24,160/mt, down by ¥140/mt or 0.58%. Trading volume reduced to 99,000 lots, and open interest reduced by 2,024 lots to 90,000 lots. Affected by overseas futures, SHFE zinc dropped slightly, but the weak supply-demand pattern remained unchanged, and SHFE zinc is expected to remain weak during the day.