Bullish and bearish sentiments intertwined, SHFE zinc fluctuates [SMM Zinc Morning Comment]

SMM, May 29:

Overnight, LME zinc opened at $2,712/mt, hitting the intraday high right at the opening. Subsequently, as bulls reduced their positions, LME zinc fluctuated downward, dipping to a low of $2,673/mt during European trading hours. Later, with insufficient downward momentum, the price center of LME zinc rebounded to hover near the daily average line, eventually closing down at $2,689/mt, down $20/mt or 0.74%. Trading volume decreased to 8,227 lots, while open interest fell by 1,301 lots to 208,000 lots. Overnight, LME zinc recorded a bearish candlestick with no upper shadow. Market pessimism about the US economy eased somewhat, the US dollar strengthened, and non-ferrous metals came under pressure. Consequently, LME zinc fell under pressure, with its price center pulling back.

Overnight, the most-traded SHFE zinc 2507 contract opened at 22,340 yuan/mt. In the early session, SHFE zinc quickly surged to a high of 22,485 yuan/mt. With mixed long and short positions, the price center of SHFE zinc pulled back below the daily average line, dipping to a low of 22,225 yuan/mt at the end of the session. It eventually closed up at 22,235 yuan/mt, up 25 yuan/mt or 0.11%. Trading volume decreased to 65,429 lots, while open interest fell by 1,350 lots to 122,000 lots. Overnight, SHFE zinc recorded a small bearish candlestick. Consumption expectations weakened somewhat, while the surplus expectation for zinc ingots persisted. SHFE zinc was in the doldrums, awaiting more macro guidance. It is expected to continue fluctuating today.