SHFE zinc fell driven by LME [SMM zinc morning comment]

SMM News on July 8:

Overnight, LME zinc opened at $2,733.5/mt. In the early session, LME zinc briefly rose to a high of $2,734.5/mt. Subsequently, as bulls reduced their positions, LME zinc fluctuated downward throughout the session, hitting a low of $2,682/mt at the close. It eventually closed at $2,683/mt, down by $52.5/mt or 1.92%. Trading volume increased to 9,067 lots, while open interest decreased by 3,154 lots to 203,000 lots. Overnight, LME zinc recorded a large bearish candlestick. US President Trump announced that new tariffs would be imposed on a series of countries, including Japan and South Korea, starting from August 1. The US dollar index surged significantly, putting pressure on non-ferrous metals, and LME zinc closed lower.

Overnight, the most-traded SHFE zinc 2508 contract opened at 22,070 yuan/mt. In the early session, bulls continued to reduce their positions. During the downward fluctuation of SHFE zinc, it hit a low of 22,010 yuan/mt. It eventually closed at 22,030 yuan/mt, down by 60 yuan/mt or 0.27%. Trading volume decreased to 58,548 lots, while open interest decreased by 218 lots to 126,000 lots. Overnight, SHFE zinc recorded a small bearish candlestick. Amid expectations of weakening consumption, domestic social inventory of zinc ingots continued to increase, weakening support for zinc prices. With bearish macro sentiment, SHFE zinc was dragged down by LME zinc and is expected to remain in the doldrums and consolidate today.