Overnight, LME zinc opened at $2,824/mt. Initially, LME zinc fluctuated around the daily moving average. During the European trading session, it quickly fell to a low of $2,779/mt, then rebounded and rose all the way to a high of $2,856/mt, finally closing up at $2,854/mt, up $35/mt, or 1.24%. Trading volume reduced to 9,097 lots, and open interest decreased by 1,604 lots to 233,000 lots. Overnight, LME zinc recorded a bullish candlestick, with support from the lower Bollinger Bands. LME zinc inventory decreased by 1,500 tons to 249,450 tons, a decrease of 0.60%. U.S. retail sales for May recorded a monthly rate of 0.1%, lower-than-expected, and U.S. economic activity data was also lower-than-expected. The US dollar index plummeted, and LME zinc first fell and then rose, with market sentiment somewhat recovering.
Overnight, the most traded SHFE 2408 zinc contract opened at 23,250 yuan/mt. Initially, SHFE zinc fell to a low of 23,230 yuan/mt, then rose all the way to a high of 23,615 yuan/mt, finally closing up at 23,615 yuan/mt, up 205 yuan/mt, or 0.88%. Trading volume reduced to 74,067 lots, and open interest increased by 3,944 lots to 91,753 lots. Overnight, SHFE zinc recorded a bullish candlestick, breaking through multiple daily moving averages. On the fundamentals side, tight supply of ore continued to support zinc prices, together with the pull from overseas futures, SHFE zinc rose all the way.
