LME continues to boost zinc prices, with SHFE zinc fluctuating [SMM zinc morning comment]

SMM News on August 11:

On Friday last week, LME zinc opened at $2,819.5/mt. After opening, LME zinc fluctuated rangebound around the daily average line. After a slight increase in the futures market, it declined again below the daily average line. After touching a low of $2,804.5/mt, LME zinc rebounded again, approaching the end of the session, it hit a high of $2,834.5/mt, and finally closed up at $2,834/mt, up $18.5/mt or 0.66%. Trading volume decreased to 8,402 lots, and open interest increased by 1,092 lots to 194,000 lots. On Friday, LME zinc recorded a bullish candlestick, with the 10-day moving average providing support below. Expectations for US Fed interest rate cuts continued to boost market sentiment, and the US dollar index remained weak. Additionally, LME zinc inventory continued to decline, reaching a low for the year, supporting LME zinc's trend of fluctuating at highs.

On Friday last week, the most-traded SHFE zinc 2509 contract opened at 22,485 yuan/mt. In the early session, SHFE zinc touched a low of 22,425 yuan/mt, then fluctuated upward, and later oscillated around 22,570 yuan/mt, hitting a high of 22,595 yuan/mt during the period. It finally closed up at 22,555 yuan/mt, up 40 yuan/mt or 0.18%. Trading volume decreased to 41,432 lots, and open interest decreased by 590 lots to 94,305 lots. On Friday, SHFE zinc recorded a bullish candlestick, with the middle band of the Bollinger Bands forming resistance. The increase in the foreign market continued to boost SHFE zinc prices, but due to the off-season in China, social inventory of zinc ingots continued to build up. The fundamental pattern of strong supply and weak demand persisted, and SHFE zinc maintained a fluctuating trend.