The decline in LME dragged down SHFE, and SHFE zinc dropped back slightly [SMM zinc morning comment]

SMM News on August 13:

Overnight, LME zinc opened at $2,845/mt. Early in the session, LME zinc reached a high of $2,851/mt, then fluctuated downward throughout the session, hitting a low of $2,810/mt near the close. It finally closed at $2,811.5/mt, down $36.5/mt or 1.28%. Trading volume decreased to 6,970 lots, while open interest increased by 1,359 lots to 194,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 20-day moving average providing support below. The macro sentiment brought about by factors such as tariff extensions has gradually been digested, and LME zinc has turned into a downward trend. However, the low LME zinc inventory still provides support for zinc prices, limiting the extent of LME zinc's decline.

Overnight, the most-traded SHFE zinc 2509 contract opened at 22,600 yuan/mt. Early in the session, SHFE zinc reached a high of 22,640 yuan/mt, then began to fluctuate downward after the opening. Near the close, SHFE zinc hit a low of 22,540 yuan/mt, finally closing at 22,540 yuan/mt, down 60 yuan/mt or 0.27%. Trading volume decreased to 26,590 lots, while open interest decreased by 88 lots to 85,898 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the middle Bollinger Band providing support. The continuous inventory buildup of domestic zinc ingots, coupled with insufficient support for zinc prices due to off-season consumption, along with the drag from the decline in the overseas market, led to a pullback in SHFE zinc during the night session.