The US dollar weakened, while the LME zinc center edged up [SMM Zinc Morning Comment]

Last Friday, LME zinc opened at $2,789/mt, initially fluctuating around the daily average line. During European trading hours, bulls increased positions, pushing the center of LME zinc up to $2,810/mt. Entering the night session, the center edged slightly higher, touching a high of $2,836/mt, and finally closed up at $2,814/mt, gaining $27/mt (0.97%). Trading volume rose to 13,170 lots, while open interest fell by 226 lots to 191,000. LME zinc recorded a long upper-shadow bullish candlestick last Friday, supported by the 10/40 daily average lines below. The center of LME zinc moved higher amid a weaker US dollar, expectations of a US interest rate cut, and peak demand season.

Last Friday, the most-traded SHFE zinc 2510 contract opened at 22,250 yuan/mt, initially touching a high of 22,300 yuan/mt before its center retreated to around 22,170 yuan/mt, where it fluctuated. It finally closed up at 22,175 yuan/mt, gaining 80 yuan/mt (0.36%). Trading volume dropped to 70,485 lots, while open interest increased by 890 lots to 117,000. SHFE zinc recorded five consecutive bearish candlesticks last Friday, capped by the 10-day average line above and supported by the lower Bollinger Band below. Driven by LME zinc, SHFE zinc's center edged up slightly, but high production from domestic smelters and continuous social inventory buildup somewhat limited its gains.

Data source statement: Except for publicly available information, other data are derived from public information, market exchanges, and SMM's internal database model, processed by SMM for reference only and not constituting decision-making advice.