Zinc Surplus Situation Remains Unchanged, Consolidation Expected to Continue [SMM Zinc Morning Comment]

SMM August 15 News:

Overnight, LME zinc opened at $2,799/mt. At the beginning of the session, LME zinc briefly rose to a high of $2,805.5/mt. Subsequently, with an increase in short positions, LME zinc fluctuated downward, reaching a low of $2,773/mt during European trading hours. It finally closed down at $2,784/mt, falling by $12.5/mt, or 0.45%. Trading volume decreased to 8,911 lots, while open interest increased by 3,010 lots to 194,000 lots. Overnight, LME zinc recorded a small bearish candlestick. With repeated expectations of an interest rate cut, the US dollar index moved upward, putting pressure on non-ferrous metals. Concerns over the zinc demand outlook led to a decline in LME zinc.

Overnight, the most-traded SHFE zinc 2510 contract opened at 22,320 yuan/mt. At the start of the session, SHFE zinc briefly rose to a high of 22,345 yuan/mt. Following an increase in short positions and insufficient upward momentum, the center pulled back, reaching a low of 22,245 yuan/mt towards the end of the session. It finally closed down at 22,255 yuan/mt, falling by 105 yuan/mt, or 0.47%. Trading volume decreased to 39,000 lots, while open interest increased by 4,103 lots to 10.1 lots. Overnight, SHFE zinc recorded a small bearish candlestick. Domestic inventory continued to increase, and the surplus situation for zinc remained unchanged. Consumption still showed weakness, and with macro sentiment fluctuating, the center of SHFE zinc shifted downward, awaiting more macro guidance. It is expected that SHFE zinc will mainly consolidate today.