SHFE zinc fluctuates downward, with the market continuing to wait for macro guidance [SMM zinc morning comment]

SMM News on July 31:

Overnight, LME zinc opened at $2,810/mt. In the early session, LME zinc briefly fluctuated and reached a high of $2,818/mt, before gradually declining along the daily average line. Near the close, LME zinc touched a low of $2,782/mt and finally closed at $2,795.5/mt, down $19/mt or 0.68%. Trading volume decreased to 8,740 lots, while open interest fell by 1,109 lots to 189,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 10-day moving average acting as resistance. The US ADP employment data and GDP data for July both exceeded expectations, indicating continued robust economic data. The US dollar index continued to rise, putting downward pressure on LME zinc, which slightly declined as it awaited guidance from trade negotiation results.

Overnight, the most-traded SHFE zinc 2509 contract opened at 22,625 yuan/mt. In the early session, SHFE zinc briefly rose and reached a high of 22,685 yuan/mt, before gradually declining and touching a low of 22,535 yuan/mt. Subsequently, SHFE zinc maintained a fluctuating trend below the daily average line and finally closed at 22,555 yuan/mt, down 115 yuan/mt or 0.51%. Trading volume decreased to 61,508 lots, while open interest increased by 816 lots to 117,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the 40-day moving average providing support. The market has been in a wait-and-see mode recently, but downstream demand remains weak during the off-season, with insufficient fundamental support for zinc prices. Coupled with the downward pressure from LME zinc, SHFE zinc also weakened slightly.