Macro sentiment has improved somewhat, but consumption has weakened. It is expected that SHFE zinc will still mainly fluctuate today [SMM Zinc Morning Comment]

SMM News on June 23:

Last Friday, LME zinc opened at $2,646.5/mt. Early in the session, LME zinc briefly rose to a high of $2,654.5/mt before lacking upward momentum and declining steadily. It hit a low of $2,622.5/mt during European trading hours. Subsequently, as bulls increased their positions, LME zinc fluctuated upward, eventually closing up at $2,649.5/mt, up $2.5/mt or 0.09%. Trading volume increased to 6,815 lots, and open interest rose by 1,564 lots to 208,000 lots. Last Friday, LME zinc recorded a long lower shadow bullish candlestick, with the 20/40-day moving averages acting as resistance. The rise in US inflation expectations and the US Fed's cautious stance influenced market expectations for the number of interest rate cuts by the US Fed this year. However, market concerns over geopolitical conflict risks have eased somewhat, leading to a slight upward movement in LME zinc. It is expected to fluctuate mainly today.

Last Friday, the most-traded SHFE zinc 2508 contract opened at 21,740 yuan/mt. Early in the session, as bulls increased their positions, SHFE zinc rapidly rose to a high of 27,800 yuan/mt. Subsequently, as bulls reduced their positions, the center of SHFE zinc pulled back below the daily moving average and fluctuated. It hit a low of 21,705 yuan/mt during the session and eventually closed up at 21,750 yuan/mt, up 75 yuan/mt or 0.35%. Trading volume decreased to 39,302 lots, and open interest increased by 1,173 lots to 106,000 lots. Last Friday, SHFE zinc recorded a small bullish candlestick. Macro sentiment has improved somewhat, but domestic consumption is gradually weakening, and inventory buildup is gradually materializing. It is expected that SHFE zinc will continue to fluctuate mainly today.