Non-ferrous metals rose overall, with zinc prices fluctuating at highs [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,825/mt. After a quick dip to $2,823.5/mt in the early session, the price center consolidated around $2,840/mt. During European trading hours, bears reduced their positions, pushing LME zinc to a high of $2,876/mt. Subsequently, the price center pulled back below the daily average line, closing up at $2,844.5/mt, a gain of $20.5/mt or 0.73%. Trading volume decreased to 18,296 lots, while open interest fell by 2,926 lots to 184,000 lots. Overnight, LME zinc recorded a long upper shadow bullish candlestick, with the upper Bollinger Bands providing support. LME zinc touched a nearly four-month high overnight, primarily due to a sharp increase in LME cancelled warrants to 59,900 mt, with the ratio of cancelled warrants rising to over half, triggering supply concerns. Subsequent attention should be paid to large investors' funds and inventory changes.

Overnight, the most-traded SHFE zinc 259 contract opened at 22,880 yuan/mt. In the early session, SHFE zinc was in the doldrums, dipping to 22,760 yuan/mt. Subsequently, with longs entering and shorts exiting, SHFE zinc fluctuated upward, with the price center moving up to around 22,870 yuan/mt. It closed up at 22,875 yuan/mt, a gain of 90 yuan/mt or 0.39%. Trading volume decreased to 72,406 lots, while open interest fell by 1,049 lots to 132,000 lots. Overnight, SHFE zinc recorded a doji, with various moving averages providing support. Driven by LME, SHFE zinc fluctuated at highs overnight, with zinc prices filling previous gaps. However, caution should be exercised against hedging pressure at highs, and prudent operation is recommended.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market exchanges, and relying on SMM's internal database models. These data are for reference only and do not constitute decision-making advice.