SHFE Zinc Records a Bullish Candle, Daily K-line Center Shifts Upward [SMM Zinc Morning Comment]

Overnight, the US Fed meeting minutes indicated that officials are inclined to cut interest rates gradually in the future. Multiple parties confirmed a ceasefire between Lebanon and Israel. Biden stated that he will push for a ceasefire in Gaza with multiple countries in the coming days. OPEC+ sources revealed that discussions are underway to delay production increases. Xi Jinping met with Singapore's Senior Minister Lee Hsien Loong. China responded to US comments on anti-drug measures and the 10% tariff, stating that the US should cherish China's goodwill. The Shenzhen Stock Exchange has formulated guidelines for reviewing IPOs on the ChiNext board.

Overnight, LME zinc opened at $3,007/mt. At the beginning of the session, LME zinc fluctuated upward above the daily average line. Near midday, it fluctuated downward below the daily average line. During European trading hours, LME zinc quickly moved upward, fluctuating around $3,080/mt, peaking at $3,095.5/mt. By the end of the session, LME zinc slightly declined, fluctuating around the daily average line, and finally closed up at $3,065/mt, an increase of $45/mt or 1.45%. Trading volume increased to 117,000 lots, and open interest increased by 86 lots to 245,000 lots. Overnight, LME zinc recorded a bullish candle, with the upper Bollinger Band forming resistance and the 10-day moving average providing support below. LME inventory decreased by 2,575 mt to 255,625 mt, a reduction of 1.00%. The continuous decrease in LME inventory supports zinc prices, but the rising US dollar index will exert pressure on zinc prices. Zinc prices are expected to maintain a fluctuating trend in the short term.

Overnight, the most-traded SHFE zinc 2501 contract opened at 25,425 yuan/mt. At the opening, SHFE zinc hit a low of 25,385 yuan/mt. Subsequently, bulls increased their positions, pushing SHFE zinc center upward to fluctuate rangebound near the daily average line, peaking at 25,620 yuan/mt. It finally closed up at 25,520 yuan/mt, an increase of 345 yuan/mt or 1.37%. Trading volume decreased to 103,000 lots, and open interest increased by 15,963 lots to 141,000 lots. Overnight, SHFE zinc recorded a bullish candle, with various moving averages below providing support. Currently, the tight supply of ore persists, and end-use consumption has slightly improved recently. Zinc prices are expected to fluctuate upward in the short term.