The tariff issue has made the market cautious, with the center of SHFE zinc prices moving up [SMM zinc morning comment]

SMM News on July 10:

Overnight, LME zinc opened at $2,715/mt. In the early session, LME zinc briefly dipped to a low of $2,708/mt. Subsequently, bears reduced their positions, and LME zinc fluctuated upward throughout the session, reaching a high of $2,746/mt at the close. It ultimately closed up at $2,742.5/mt, gaining $23.5/mt or 0.86%. Trading volume decreased to 8,915 lots, while open interest fell by 1,449 lots to 198,000 lots. Overnight, LME zinc recorded a large bullish candlestick, retracing the 5/10-day moving averages. With recurring tariff issues, the market remained cautious. However, LME inventory continued destocking to a low point, with low inventory supporting zinc prices, and the center of LME zinc prices shifted upward.

Overnight, the most-traded SHFE zinc 2508 contract opened at 22,120 yuan/mt. In the early session, bears reduced their positions, and SHFE zinc fluctuated upward, reaching a high of 22,280 yuan/mt at the close. It ultimately closed up at 22,220 yuan/mt, gaining 100 yuan/mt or 0.45%. Trading volume decreased to 58,636 lots, while open interest fell by 3,719 lots to 111,000 lots. Overnight, SHFE zinc recorded a large bullish candlestick, facing pressure from the 5-day moving average above. With recurring tariff issues, the resulting uncertainty prompted some bears to take profits and exit the market. The center of SHFE zinc prices shifted upward, and it is expected that SHFE zinc will consolidate with fluctuations today.