Waiting for more macro guidance, SHFE zinc fluctuates and consolidates [SMM Zinc Morning Comment]

SMM, May 28:

Overnight, LME zinc opened at $2,730/mt. In the early session, LME zinc briefly rose, hitting a high of $2,738.5/mt. Subsequently, bulls reduced their positions, causing LME zinc to plunge. It reached a low of $2,683/mt during European trading hours before its center moved up to oscillate near the daily average line. It eventually closed down at $2,709/mt, down $3/mt or 0.16%. Trading volume increased to 9,583 lots, while open interest decreased by 887 lots to 210,000 lots. Overnight, LME zinc recorded a long lower shadow and a large bearish candlestick. Pressured by a stronger US dollar and uncertainties surrounding the US tariff outlook, non-ferrous metals generally declined. LME zinc also fell, with its center pulling back.

Overnight, the most-traded SHFE zinc 2507 contract opened at 22,380 yuan/mt. In the early session, SHFE zinc quickly rose, hitting a high of 22,485 yuan/mt. With mixed long and short positions, the center of SHFE zinc pulled back to near the daily average line, reaching a low of 22,355 yuan/mt during the session. It eventually closed up at 22,410 yuan/mt, up 80 yuan/mt or 0.36%. Trading volume decreased to 66,848 lots, while open interest decreased by 216 lots to 121,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick. From a fundamental perspective, the market had largely absorbed the news of a smelter in South China extending its maintenance. However, consumption remained resilient. SHFE zinc mainly consolidated, and it is expected to continue oscillating today.