Driven by LME, SHFE zinc opened higher with a gap [SMM zinc morning comment]

SMM News on July 3:

Overnight, LME zinc opened at $2,715/mt. After opening, LME zinc fluctuated along the daily average line, hitting a low of $2,700/mt during the session. It then rebounded from the lows and continued to rise, reaching a high of $2,759/mt near the close. It finally closed up at $2,753/mt, gaining $39.5/mt or 1.46%. Trading volume decreased to 10,568 lots, while open interest increased by 837 lots to 209,000 lots. Overnight, LME zinc recorded a bullish candlestick, with the upper Bollinger Band forming resistance. The US ADP employment data for June was significantly lower than the previous value and expectations, reigniting market expectations for an interest rate cut. The US dollar index fell back from highs. Coupled with ongoing uncertainties surrounding tariffs, non-ferrous metals generally rose, and the center of LME zinc prices rebounded slightly.

Overnight, the most-traded SHFE zinc 2508 contract opened at 22,320 yuan/mt. In the early session, SHFE zinc hit a low of 22,285 yuan/mt, then slowly fluctuated upward. After reaching a high of 22,400 yuan/mt, it maintained a fluctuating trend above the daily average line. It finally closed up at 22,375 yuan/mt, gaining 145 yuan/mt or 0.65%. Trading volume decreased to 57,402 lots, while open interest increased by 180 lots to 130,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the 5-day moving average providing support. Driven by the LME zinc trend, SHFE zinc opened higher with a gap. Currently, zinc ingot inventory remains low, still providing some support for zinc prices. SHFE zinc prices rose slightly during the night session.