Zinc prices maintain fluctuating trend. Pay attention to policy changes [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,749/mt. After a brief consolidation around the daily average line in the early session, LME zinc fluctuated upward above the daily average line amid long entry and short covering. It reached $2,782.5/mt during European trading hours. Subsequently, bears launched a high-level attack, causing LME zinc to decline all the way. It closed at $2,750/mt, down $4/mt or 0.15%. Trading volume decreased to 7,339 lots, while open interest increased by 144 lots to 191,000 lots. Overnight, LME zinc recorded a long upper shadow bullish candlestick, with the 5-day moving average acting as resistance above and the 40-day moving average providing support below. Overnight, the US Institute for Supply Management (ISM) Non-Manufacturing Purchasing Managers' Index (PMI) for July slipped to 50.1 from 50.8 in June, and the ISM New Orders Index fell to 50.3 from 51.3, indicating that the economy remains weak. LME zinc jumped initially and then pulled back, with attention paid to the trend of LME zinc inventory.

Overnight, the most-traded SHFE zinc 2509 contract opened at 22,360 yuan/mt. In the early session, bears increased their positions, pushing SHFE zinc down all the way. Subsequently, the center operated around 22,300 yuan/mt. It closed at 22,300 yuan/mt, down 15 yuan/mt or 0.07%. Trading volume decreased to 35,389 lots, while open interest increased by 641 lots to 99,113 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the middle Bollinger Band acting as resistance above. The zinc price returned to the fundamental pattern of increased supply and weak demand, with bears mainly increasing their positions. The support at the round number level is temporarily observed, with attention paid to changes in policy.

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