Driven by the overseas market, SHFE zinc rises; zinc prices are expected to fluctuate at high levels in the short term [SMM Zinc Morning Comment Oct 29]

Iran: Will not give up the right to respond to Israel's "aggression"; Israel proposes not to expand ground operations in Lebanon in exchange for the US to impose blockade measures on Hezbollah; multiple ballot boxes in the US were set on fire again; the US Treasury Department lowers Q4 financing expectations to $546 billion; in China, long-term deposit rates of small and medium-sized banks have fallen below 2% across the board.

Overnight, LME zinc opened at $3,080.5/mt, initially fluctuated downward below the daily moving average to a low of $3,042.5/mt, then fluctuated upward above the daily moving average, fluctuating rangebound around $3,080/mt. However, as bulls reduced positions, LME zinc quickly fell below the daily moving average, then rose all the way to a high of $3,158/mt at the end of the session, finally closing up at $3,151.5/mt, up $52/mt, an increase of 1.68%. Trading volume decreased to 78,666 lots, and open interest decreased by 2,840 lots to 255,000 lots. Overnight, LME zinc recorded a bullish candlestick, with the upper Bollinger Bands forming resistance and the 40-day moving average providing support below. LME inventory increased by 4,650 mt to 247,075 mt, an increase of 1.92%. LME inventory increased. Currently, the US Treasury Department lowers Q4 financing expectations, reducing borrowing demand in Q4, coupled with tight supply, zinc prices are expected to maintain a fluctuating trend.

Overnight, the most-traded SHFE zinc 2412 contract opened at 24,970 yuan/mt, immediately fell to a low of 24,955 yuan/mt after the opening, then bulls increased positions, pushing SHFE zinc up to a high of 25,185 yuan/mt. After encountering resistance, it immediately fell below the daily moving average, then fluctuated upward above the daily moving average, fluctuating rangebound around 25,125 yuan/mt. However, as bears increased positions, SHFE zinc slightly fell, fluctuating around 25,110 yuan/mt. At the end of the session, as bears reduced positions, SHFE zinc rose, finally closing up at 25,180 yuan/mt, up 210 yuan/mt, an increase of 0.84%. Trading volume decreased to 82,715 lots, and open interest increased by 2,389 lots to 110,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the upper Bollinger Bands forming resistance and the middle Bollinger Bands providing support below. Currently, SHFE zinc rises driven by the overseas market, while domestic supply and demand remain weak, SHFE zinc is expected to maintain a fluctuating trend.