Macro sentiment has somewhat diminished, putting pressure on LME zinc [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,173/mt. Initially, it briefly rose to $3,190.5/mt, but then shorts increased their positions, causing LME zinc to fluctuate downward, reaching a low of $3,066.5/mt during the night session. It eventually closed down at $3,076.5/mt, a decrease of $103.5/mt, or 3.25%. Trading volume increased to 15,828 lots, and open interest rose by 1,147 lots to 261,000 lots. Overnight, LME zinc recorded a large bearish candlestick, with LME inventory decreasing by 1,700 mt to 242,400 mt, a drop of 0.7%. Macro sentiment has weakened, with expectations for further US interest rate cuts diminishing, combined with the fading of positive domestic policy sentiment, impacting LME zinc. It is expected to fluctuate today.

Overnight, the most-traded SHFE zinc 2411 contract opened at 25,360 yuan/mt. Initially, it briefly touched 25,365 yuan/mt, but then shorts increased their positions, causing SHFE zinc to fluctuate downward, reaching a low of 25,045 yuan/mt before slightly correcting upwards. It eventually closed down at 25,160 yuan/mt, a decrease of 125 yuan/mt, or 0.49%. Trading volume decreased to 75,422 lots, and open interest increased by 806 lots to 117,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the optimism from domestic policy support somewhat fading, combined with the accumulation of zinc social inventory. Actual downstream consumption still exerted pressure on SHFE zinc's trend, causing its focus to shift downward. SHFE zinc is expected to fluctuate today.