SMM Zinc Market Morning Comment (Jul 19)

Overnight, LME zinc opened at $2,849/mt, briefly reaching a high of $2,856.5/mt, then dipping to $2,790.5/mt, and finally closed at $2,809/mt, down $33/mt, a decrease of 1.16%. The trading volume increased to 12,682 lots, and the open interest decreased by 327 lots to 224,000 lots. Overnight, LME zinc recorded three consecutive bearish candlesticks, with the lower Bollinger Band providing support. Overnight, LME inventory continued to decrease by 3,500 mt to 242,600 mt, a drop of 1.42%. The strong signs in the US economy strengthened the dollar, suppressing the advantage of non-ferrous metals, and the price focus of LME zinc shifted downward.

Overnight, the most-traded SHFE 2409 zinc contract opened at 24,370 yuan/mt, briefly reaching a high of 23,610 yuan/mt, then dropping to 23,450 yuan/mt, and finally closed at 23,465 yuan/mt, down 245 yuan/mt, a decrease of 0.91%. The trading volume decreased to 89,671 lots, and the open interest increased by 3,730 lots to 97,041 lots. Overnight, SHFE zinc recorded a small bearish candlestick, with various moving averages above forming resistance and the MACD bearish candlestick expanding. Although the price focus of SHFE zinc shifted downward again, market trading and consumption performed poorly. However, the supply reduction is confirmed, and SMM zinc inventory fell to 191,900 mt, indicating that zinc prices have relatively limited downside room.