Resonance in domestic and overseas markets, SHFE zinc's price center moves up [SMM Zinc Morning Comment]

SMM News on July 11:

Overnight, LME zinc opened at $2,738.5/mt. Early in the session, LME zinc briefly dipped to a low of $2,735/mt before bears reduced their positions, causing LME zinc to fluctuate upward throughout the session, touching a high of $2,784/mt at the close. It eventually closed up at $2,777/mt, gaining $34.5/mt or 1.26%. Trading volume increased to 13,460 lots, while open interest decreased by 7,587 lots to 191,000 lots. Overnight, LME zinc recorded a large bullish candlestick, retracing the 5/10-day moving averages. Overseas refined zinc production showed little growth, coupled with a continuous decline in LME zinc ingot inventory. The excessively low zinc ingot inventory supported zinc prices. Macro-wise, expectations of interest rate cuts fluctuated, causing the center of LME zinc to move higher.

Overnight, the most-traded SHFE zinc 2508 contract opened at 22,390 yuan/mt. Early in the session, bears reduced their positions, causing SHFE zinc to quickly rise and touch a high of 22,475 yuan/mt. Subsequently, upward momentum waned, and the center pulled back. It eventually closed up at 22,440 yuan/mt, gaining 55 yuan/mt or 0.25%. Trading volume decreased to 59,692 lots, while open interest decreased by 2,470 lots to 110,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick. Benefiting from anti-cut-throat competition policies in China, ferrous metals continued to rally, driving SHFE zinc higher. Meanwhile, the strong rise in LME zinc also boosted SHFE zinc, causing the center of SHFE zinc to move higher. It is expected that SHFE zinc will mainly consolidate with a bias towards holding up well today.