Domestic Macro Expected to Release Positive News, May Provide Some Support to Zinc Prices [SMM Zinc Morning Comment]

Overnight, Trump: Will Impose Second Round of Tariffs on Venezuela; White House Sources: US-Russia Talks Go Smoothly, Positive News to Be Announced; Fed's Bostic Expects Only One Interest Rate Cut This Year; Sources: OPEC+ Plans Second Production Increase in May; PBOC: MLF Operations to Be Conducted with Fixed Quantity, Interest Rate Tender, and Multiple Price Winning Bids; Ministry of Finance: Fiscal Policy to Be More Proactive in 2025; China-EU Discussing Possibility of Sending Peacekeeping Forces to Ukraine? Foreign Ministry: Reports Completely Untrue.

Overnight, LME zinc opened at $2,932/mt. At the beginning of the session, the center of LME zinc fluctuated around the daily average. During European trading hours, LME zinc rose to a high of $2,976/mt. Subsequently, longs reduced their positions, causing LME zinc to plunge during the night session. Attempts to rise were met with resistance at the daily average, ultimately leading to a pullback. It closed at $2,938.5/mt, up $11/mt, or 0.38%. Trading volume decreased to 64,114 lots, and open interest fell by 451 lots to 224,000 lots. On March 24, LME zinc inventory decreased by 750 mt to 153,650 mt, a decline of 0.49%. Overnight, LME zinc recorded a bullish candlestick with no lower shadow. The lower Bollinger Band provided resistance, while the 20- and 60-day moving averages offered support. The US S&P Global Composite PMI for March exceeded expectations, and the US dollar index's rise put pressure on LME zinc, leading to a pullback.

Overnight, the most-traded SHFE zinc 2505 contract opened at 24,270 yuan/mt. After opening, SHFE zinc quickly rose to 24,280 yuan/mt. Subsequently, longs reduced their positions, causing SHFE zinc to fall below the daily average to a low of 24,080 yuan/mt. Then, bulls and bears engaged in a tug-of-war, with the center of SHFE zinc fluctuating around 24,110 yuan/mt. It closed at 24,110 yuan/mt, down 90 yuan/mt, or 0.37%. Trading volume decreased to 64,465 lots, and open interest fell by 2,179 lots to 131,000 lots. Overnight, SHFE zinc recorded a bearish candlestick. The upper Bollinger Band provided resistance, while various moving averages offered support. Although domestic social inventory slightly decreased, SHFE zinc also weakened slightly under external influence. The Ministry of Finance recently stated that fiscal policy will be more proactive in 2025, which is expected to provide some support to zinc prices.