Overseas sentiment eases, SHFE zinc boosted by LME [SMM zinc morning comment]

SMM News on June 25:

Overnight, LME zinc opened at $2,687.5/mt. Early in the session, LME zinc briefly dipped to a low of $2,685.5/mt. Subsequently, bears reduced their positions, and LME zinc fluctuated upward throughout the session, reaching a high of $2,722/mt during the night session. However, the upward momentum weakened, and the price center of LME zinc shifted downward, eventually closing up at $2,710/mt, a gain of $29.5/mt or 1.10%. Trading volume decreased to 11,290 lots, and open interest fell by 623 lots to 212,000 lots. Overnight, LME zinc recorded a large bullish candlestick, with the KDJ line opening upward. Trump announced that the US would hold talks with Iran next week, easing risk-averse sentiment. Additionally, market expectations for an interest rate cut resurfaced, weakening the US dollar and driving LME zinc higher. It is expected that LME zinc will continue to fluctuate at highs today.

Overnight, the most-traded SHFE zinc 2508 contract opened at 22,090 yuan/mt. Early in the session, SHFE zinc slightly dipped to a low of 22,030 yuan/mt. Subsequently, bulls increased their positions, and SHFE zinc oscillated along the daily average line, reaching a high of 22,100 yuan/mt during the session. SHFE zinc mainly fluctuated considerably, with fluctuations of less than 100 yuan. It eventually closed up at 22,095 yuan/mt, a gain of 50 yuan/mt or 0.23%. Trading volume decreased to 47,542 lots, and open interest increased by 98 lots to 130,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick. Boosted by overseas market sentiment, SHFE zinc followed the LME zinc upward. However, domestic consumption is gradually weakening, and there are still expectations of a zinc supply surplus. It is expected that SHFE zinc will continue to fluctuate at highs today.