The strengthening of LME drove the center of zinc price up [SMM zinc morning comment]

Overnight, LME zinc opened at $2,728/mt. After briefly dipping to $2,718.5/mt in the early session, LME zinc fluctuated upward along the daily average line, with the night session's center moving up to $2,750/mt. During this period, it reached a high of $2,758.5/mt and eventually closed up at $2,754/mt, gaining $24.5/mt or 0.9%. Trading volume decreased to 8,165 lots, while open interest increased by 1,135 lots to 190,000 lots. Overnight, LME zinc turned from bearish to positive territory, with the 60-day moving average providing support below. Overnight, LME zinc inventory fell again below 100,000 mt, with the concentration of cancelled warrants increasing to over 47%. There was a high concentration of funds from major players, and at the same time, expectations for an interest rate cut improved on the macro front, causing LME zinc to stop its decline.

Overnight, the most-traded SHFE zinc 2509 contract opened at 22,330 yuan/mt. In the early session, SHFE zinc fluctuated near the daily average line, and then its center moved down as bears entered and bulls exited. It eventually closed up at 22,280 yuan/mt, gaining 75 yuan/mt or 0.34%. Trading volume decreased to 38,443 lots, while open interest decreased by 2,510 lots to 100,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the 40-day moving average providing support below. Driven by the strength of the external market (LME), the center of SHFE zinc moved up, with bearish funds exiting. Attention should be paid to the support at the 22,000 yuan/mt integer level.

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.