Weak consumption continues to drag, SHFE zinc maintains fluctuating trend [SMM zinc morning comment]

SMM News on July 29:

Overnight, LME zinc opened at $2,833.5/mt. Early in the session, LME zinc reached a high of $2,843.5/mt, then fluctuated downward, hitting a low of $2,803/mt during the session. Subsequently, LME zinc surged again above the daily average line. Near the end of the session, LME zinc pulled back once more, closing at $2,805/mt, down $23.5/mt or 0.83%. Trading volume increased to 9,331 lots, while open interest decreased by 1,902 lots to 189,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 10-day moving average providing support below. The US dollar index rose significantly, but the low LME zinc inventory still supported zinc prices. LME zinc consolidated in a fluctuating trend. As a new round of China-US trade negotiations began, the market continued to await macroeconomic guidance.

Overnight, the most-traded SHFE zinc 2509 contract opened at 22,645 yuan/mt. Early in the session, SHFE zinc fluctuated around the daily average line, reaching a high of 22,725 yuan/mt during the period. Then, SHFE zinc fluctuated downward slightly. Near the end of the session, it hit a low of 22,640 yuan/mt, closing at 22,665 yuan/mt, up 20 yuan/mt or 0.09%. Trading volume decreased to 52,677 lots, while open interest decreased by 113 lots to 124,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the 20-day moving average providing support below. On Monday, SMM zinc ingot inventory continued to build up, with fundamentals providing weak support for zinc prices. However, the relatively positive macroeconomic expectations still provided some support for zinc prices, and SHFE zinc maintained a fluctuating trend.