Macro sentiment is positive, zinc prices maintain fluctuating trend [SMM Zinc Morning Comment]

SMM August 26 News:

Overnight, LME zinc was closed for a summer bank holiday.

Overnight, SHFE zinc opened at 22,355 yuan/mt. At the beginning of the session, with increased short positions, SHFE zinc plunged to a low of 22,260 yuan/mt. Subsequently, with increased long positions, the center of SHFE zinc slightly rose. Then, intense competition between bulls and bears caused the center of SHFE zinc to fluctuate rangebound around 22,300 yuan/mt. It finally closed down at 22,295 yuan/mt, a decrease of 100 yuan/mt or 0.45%. Trading volume decreased to 36,289 lots, while open interest increased by 2,542 lots to 108,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the 20- and 40-day moving averages exerting pressure from above and the 60-day moving average providing support from below. According to SMM data, as of this Monday, domestic social inventory continued to increase, and overall domestic consumption still showed no significant improvement, weakening support for SHFE zinc. However, the National Development and Reform Commission (NDRC) recently stated that it will continue to improve policies and measures to expand domestic demand, leading to better macro sentiment, and SHFE zinc maintained a fluctuating trend.