Non-farm payrolls data unexpectedly cools down, zinc price center moves lower [SMM Zinc Morning Comment]

Last Friday, LME zinc opened at $2,769/mt. In the early session, LME zinc fluctuated rangebound around the daily average line. During the European trading session, with short positions entering and long positions exiting, LME zinc fluctuated downward. As the night session approached, it touched a low of $2,711.5/mt. Entering the night session, LME zinc recovered upward but encountered resistance at the daily average line, ultimately closing down at $2,725.5/mt, a drop of $32.5/mt or 1.18%. Trading volume increased to 14,107 lots, while open interest decreased by 568 lots to 189,000 lots. Last Friday, LME zinc recorded three consecutive bearish candlesticks, with the middle rail of the Bollinger Bands forming resistance above. Last Friday's non-farm payrolls data unexpectedly cooled, indicating a weaker US job market and raising market concerns about the US economic outlook, causing the center of LME zinc to move downward.

Last Friday, the most-traded SHFE zinc 2509 contract opened lower with a gap at 22,225 yuan/mt. In the early session, after briefly touching a high of 22,265 yuan/mt, the center of SHFE zinc moved downward below the daily average line. Towards the end of the session, it recovered upward to around 22,235 yuan/mt, ultimately closing down at 22,225 yuan/mt, a drop of 120 yuan/mt or 0.54%. Trading volume decreased to 53,871 lots, while open interest decreased by 2,926 lots to 105,000 lots. Last Friday, SHFE zinc recorded a small bearish candlestick, with the KDJ indicator's opening expanding downward. Last Friday, influenced by the decline in the LME market, SHFE zinc was in the doldrums. Against the backdrop of increased smelting production, consumption support was insufficient, and zinc prices encountered resistance above, with attention paid to capital dynamics.

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