Macro sentiment improves, SHFE zinc fluctuates mainly [SMM zinc morning comment]

SMM reported on June 24:

Overnight, LME zinc opened at $2,687/mt. In the early session, LME zinc oscillated along the daily average line, briefly dipping to a low of $2,675/mt. During European trading hours, bulls increased their positions, driving LME zinc up to a high of $2,715.5/mt. Subsequently, bears increased their positions, causing the center of LME zinc to move lower. It eventually closed down at $2,680.5/mt, a drop of $5.5/mt or 0.2%. Trading volume increased to 14,712 lots, and open interest rose by 2,923 lots to 213,000 lots. Overnight, LME zinc recorded a long upper shadow bearish candlestick, with the 20/40-day moving averages acting as resistance. Due to the Israel-Hamas ceasefire dampening risk-averse sentiment and Powell's statement that more time is needed before considering an interest rate cut, the US dollar weakened, providing some support to LME zinc prices. However, consumption expectations remain weak, and LME zinc traded within a range. It is expected to continue oscillating today.

Overnight, the most-traded SHFE zinc 2508 contract opened at 21,975 yuan/mt. In the early session, bears increased their positions, causing SHFE zinc to rapidly decline to a low of 21,860 yuan/mt. Subsequently, downward momentum waned, and the center moved slightly higher. It eventually closed down at 21,905 yuan/mt, a drop of 15 yuan/mt or 0.07%. Trading volume decreased to 68,309 lots, and open interest rose by 4,237 lots to 126,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, under pressure from the 40-day moving average. Although macro sentiment improved somewhat, domestic consumption is gradually weakening, and there are still expectations of a supply surplus for zinc. SHFE zinc adjusted slightly and is expected to continue oscillating today.