The total domestic financial volume achieved reasonable growth, and SHFE zinc recorded a small bullish candlestick [SMM Zinc Morning Comment]

SMM reported on July 15:

Overnight, LME zinc opened at $2,748/mt, then reached a high of $2,746/mt. Subsequently, LME zinc declined slightly and consolidated around the daily average line. During European trading hours, LME zinc plunged below the daily average line, fluctuating rangebound around a center of $2,720/mt, with a low of $2,711/mt. In the end, LME zinc recovered some of its losses, closing at $2,732.5/mt, down $5.5/mt or 0.20%. Trading volume increased to 112,000 lots, while open interest rose by 1,614 lots to 194,000 lots. Overnight, LME zinc inventory decreased by 350 mt to 105,250 mt, a decline of 0.33%. A long lower shadow bearish candlestick was recorded overnight, with the upper Bollinger Bands acting as resistance and the 40/60-day moving averages providing support. The increase in overseas inventories weakened support for LME zinc. Meanwhile, Trump stated that if Russia fails to reach an agreement on the Russia-Ukraine conflict within 50 days, a 100% secondary tariff will be imposed on Russia. The macro sentiment turned bearish, causing the center of LME zinc to decline.

Overnight, SHFE zinc opened at 22,110 yuan/mt. In the early session, SHFE zinc consolidated briefly around the daily average line, with a low of 22,080 yuan/mt. Subsequently, as bears reduced their positions, SHFE zinc quickly rose above the daily average line, reaching a high of 22,195 yuan/mt. In the end, as bulls reduced their positions, SHFE zinc pulled back slightly, closing at 22,145 yuan/mt, down 105 yuan/mt or 0.47%. Trading volume decreased to 54,435 lots, while open interest decreased by 4,323 lots to 89,854 lots. Overnight, SHFE zinc recorded a small bullish candlestick, with the 5/10-day moving averages acting as resistance and the 40/60-day moving averages providing support. Influenced by LME zinc, SHFE zinc opened lower with a gap. However, yesterday, the State Council Information Office held a press conference stating that the cumulative increase in social financing scale in the first half of 2025 was 22.83 trillion yuan, achieving reasonable growth in the financial aggregate. The domestic market sentiment was relatively positive, causing SHFE zinc to rise slightly.