LME zinc in the doldrums, daily candlestick center slightly lower [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,654/mt. Early in the session, LME zinc's center moved up along the daily average line to around $2,670/mt, hitting a high of $2,673/mt. Subsequently, as bulls took profits and exited the market, LME zinc's center moved down to around $2,640/mt. It eventually closed down at $2,644/mt, down $7/mt or 0.26%. Trading volume increased to 9,906 lots, while open interest decreased by 1,890 lots to 207,000 lots. Overnight, LME zinc recorded a small bearish candlestick, with the daily candlestick's center slightly sinking. Although data showed a cooling in US employment and inflation, strengthening expectations for US Fed interest rate cuts, renewed tariff trade tensions have increased uncertainty about the economic outlook, keeping LME zinc in the doldrums.

Overnight, the most-traded SHFE zinc 2507 contract opened at 22,000 yuan/mt. Early in the session, after a rapid decline in SHFE zinc, bears took profits and exited the market, leading to a "V"-shaped reversal in SHFE zinc, with its center moving up above the daily average line. It eventually closed down at 22,030 yuan/mt, down 25 yuan/mt or 0.11%. Trading volume decreased to 65,082 lots, while open interest increased by 753 lots to 122,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick, but it was capped by the 5-day moving average. Overnight, zinc prices were in the doldrums, with uncertainty about trade and demand prospects casting a shadow over the market. Short positions remained strong, pushing the center of zinc prices down.