Funds were relatively cautious, zinc in the doldrums [SMM Zinc Morning Comment]

SMM August 20 News:

Overnight, LME zinc opened at $2,776.5/mt, and initially fluctuated around the daily average. During European trading hours, it rose to a high of $2,787/mt. Subsequently, as bulls reduced their positions, LME zinc fluctuated downward, reaching a low of $2,761/mt in the night session. It finally closed down at $2,770/mt, a decrease of $14/mt or 0.5%. Trading volume fell to 7,239 lots, and open interest decreased by 1,232 lots to 193,000 lots. Overnight, LME zinc recorded a small bearish candlestick. The production of major overseas zinc mines in H1 2025 increased by over 12% YoY. A stronger US dollar continued to pressure non-ferrous metals, with cautious capital, leading to a slight pullback in LME zinc, awaiting more macro guidance.

Overnight, the most-traded SHFE zinc 2510 contract opened at 22,215 yuan/mt. Initially, it briefly rose to 22,275 yuan/mt. As bears added positions and upward momentum weakened, the center pulled back to a low of 22,155 yuan/mt. It finally closed down at 22,180 yuan/mt, a decrease of 25 yuan/mt or 0.11%. Trading volume fell to 41,879 lots, and open interest increased by 2,745 lots to 10.8 lots. Overnight, SHFE zinc recorded a small bearish candlestick. The Tianjin region began restricting vehicles below the National V standard from entering factories, leading to the shutdown of some small plants. Consumption remains weak, and macro sentiment is volatile, causing the center of SHFE zinc to shift downward. It is expected that SHFE zinc will mainly be in the doldrums today.