Funds still expect macro policies to support SHFE zinc, which edges up [SMM Zinc Morning Comment]

SMM August 20 Report:

Overnight, LME zinc opened at $2,782.5/mt. At the beginning of the session, LME zinc fluctuated around the daily moving average. During European trading hours, it reached a high of $2,790/mt. Subsequently, with increased short positions, LME zinc plunged, pulling back to a low of $2,760.5/mt during the night session. It finally closed down at $2,767/mt, a decrease of $19/mt or 0.68%. Trading volume increased to 7,299 lots, and open interest rose by 574 lots to 192,000 lots. Overnight, LME zinc recorded a small bearish candlestick, with the 10- and 20-day moving averages exerting downward pressure. The US S&P Global Composite PMI for August hit an 8-month high, leading traders to reduce their bets on two interest rate cuts by the US Fed this year, causing the center of LME zinc to decline.

Overnight, the most-traded SHFE zinc 2510 contract opened at 22,215 yuan/mt. At the start of the session, SHFE zinc dipped to 22,230 yuan/mt, then fluctuated near the daily moving average, and finally closed up at 22,250 yuan/mt, an increase of 10 yuan/mt or 0.04%. Trading volume decreased to 40,684 lots, and open interest increased by 452 lots to 111,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick. Domestic consumption remains weak, but macro sentiment is positive, and there is still an optimistic expectation for macro policies, leading the center of SHFE zinc to edge up slightly.