Bulls increased their positions, and SHFE zinc recorded a five-day winning streak [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,844/mt. In the early session, LME zinc oscillated around the daily average line. During the European trading session, bears increased their positions, pushing the center of LME zinc prices below the daily average line, with a low of $2,823/mt. Entering the night session, bulls increased their positions, driving LME zinc prices to rally rapidly and touch a high of $2,863/mt. It eventually closed up at $2,853.5/mt, up $9/mt or 0.32%. Trading volume decreased to 13,540 lots, while open interest increased by 837 lots to 185,000 lots. Overnight, LME zinc recorded a four-day winning streak, with the daily candlestick center moving upwards. Amid escalating trade tensions and conflicts between the White House and the US Fed, the US dollar continued to decline, and non-ferrous metals generally rose. Additionally, LME zinc inventory decreased again, with bullish funds mainly increasing their positions, and zinc prices maintaining their strength.

Overnight, the most-traded SHFE zinc 2509 contract opened at 22,850 yuan/mt. In the early session, SHFE zinc consolidated around the daily average line. Subsequently, bulls flooded into SHFE zinc, driving prices to rally and touch a high of 23,020 yuan/mt. It eventually closed up at 22,970 yuan/mt, up 110 yuan/mt or 0.48%. Trading volume decreased to 76,490 lots, while open interest increased by 818 lots to 135,000 lots. Overnight, SHFE zinc recorded a five-day winning streak, with the KDJ indicator expanding upwards. The optimistic sentiment in the overnight market continued to ferment. The State Council issued regulations on rural roads, boosting demand expectations, and zinc prices mainly fluctuated at highs.

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