There are many uncertainties in the market. SHFE zinc opened lower with a gap [SMM Zinc Morning Comment]

SMM News on July 14:

Last Friday, LME zinc opened at $2,771/mt. In the early session, LME zinc rose slightly, then fluctuated around the daily average line, reaching a high of $2,785/mt. During the European trading session, LME zinc quickly fell below the daily average line. Entering the night session, LME zinc fluctuated rangebound around $2,736/mt, reaching a low of $2,732/mt. It eventually closed down at $2,738/mt, a drop of $39/mt or 1.40%. Trading volume decreased to 88,132 lots, while open interest increased by 1,737 lots to 193,000 lots. Last Friday, LME zinc recorded a bearish candlestick, with the upper Bollinger Bands acting as resistance and the 20/60-day moving averages providing support. Trump announced a 30% tariff on the EU and Mexico, while Fed officials indicated that the latest tariff threats might delay interest rate cuts, causing the center of LME zinc prices to fall.

Last Friday, SHFE zinc opened at 22,225 yuan/mt. In the early session, bulls reduced their positions, causing SHFE zinc to briefly fall below the daily average line to a low of 22,170 yuan/mt. Subsequently, bears reduced their positions, pushing SHFE zinc above the daily average line to a high of 22,260 yuan/mt. Near the end of the session, bulls reduced their positions again, causing SHFE zinc to drop back slightly. It eventually closed down at 22,215 yuan/mt, a drop of 165 yuan/mt or 0.74%. Trading volume decreased to 57,649 lots, while open interest decreased by 3,744 lots to 104,000 lots. Last Friday, SHFE zinc recorded a bearish candlestick, with the upper Bollinger Bands acting as resistance and the 20/60-day moving averages providing support. Affected by the LME market, SHFE zinc opened lower with a gap. Domestic anti-"rat race" competition policies improved domestic sentiment, but the current fundamental situation remained unchanged. Coupled with the potential delay in Fed interest rate cuts, it is expected that SHFE zinc will maintain a fluctuating trend.