Dragged Down by the Overseas Market, SHFE Zinc Continues to Decline [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,874/mt, initially reaching a high of $2,882/mt. After the opening, it trended downward along the daily moving average, hitting a low of $2,810/mt during the night session. Subsequently, LME zinc fluctuated around $2,825/mt and eventually closed lower at $2,822.5/mt, down by $56.5/mt or 1.96%. Trading volume increased to 14,595 lots, while open interest decreased by 2,118 lots to 216,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 5-day moving average forming resistance. LME zinc inventory decreased by 4,000 mt to 220,525 mt, a drop of 1.78%. The ongoing uncertainty surrounding US tariff policies continued to disrupt the market, while the US dollar index strengthened further, exerting pressure on zinc prices. The downward trend in LME zinc persisted.

Overnight, the most-traded SHFE zinc 2502 contract opened at 24,070 yuan/mt, initially reaching a high of 24,080 yuan/mt. After the opening, it quickly declined to a low of 23,815 yuan/mt, then rebounded from the low to fluctuate near the daily moving average. It eventually closed lower at 23,950 yuan/mt, down by 275 yuan/mt or 1.14%. Trading volume increased to 99,888 lots, while open interest rose by 100 lots to 103,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the upper Bollinger Band forming resistance. Dragged down by the overseas market trend and the unchanged domestic supply increase and demand decrease pattern, SHFE zinc continued to decline during the night session.