SMM Zinc Market Morning Comment (July 30)

Overnight, LME zinc opened at $2,679/mt. At the beginning of the session, LME zinc quickly rose to a high of $2,697.5/mt, then fluctuated downward, hitting a low of $2,631/mt near the end of the trading session, and finally closed lower at $2,639/mt, down $24/mt, a decrease of 0.9%. Trading volume increased to 9,226 lots, and open interest reduced by 2,360 lots to 217,000 lots. LME zinc inventory decreased by 1,800 mt to 240,550 mt, a drop of 0.74%. Overnight, LME zinc recorded a bearish candlestick, with the lower Bollinger Band providing support. The US dollar index rebounded from a low level, and market expectations for a rate cut in September were mostly digested, putting pressure on LME zinc's performance. Attention should be paid to subsequent US data releases.

Overnight, SHFE zinc 2409 contract opened at 22,705 yuan/mt. At the beginning of the session, SHFE zinc fluctuated around the average daily line, reaching a high of 22,760 yuan/mt. Subsequently, SHFE zinc fluctuated downward to a low of 22,545 yuan/mt. Bears reduced their positions, and SHFE zinc rebounded to near the average daily line, finally closing lower at 22,645 yuan/mt, down 145 yuan/mt, a decrease of 0.64%. Trading volume reduced to 68,392 lots, and open interest increased by 1,495 lots to 93,278 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the 10-day moving average above forming resistance. Market concerns about zinc demand persisted during the consumption off-season. However, the supply-demand mismatch at the upstream mine still provided some support for zinc prices.