The peak consumption season still requires time to transmit, SHFE zinc recorded a small bearish candlestick [SMM zinc morning comment]

SMM September 10 news:

Overnight, LME zinc opened at $2,876.5/mt. At the beginning of the session, it briefly rose to $2,882/mt before bulls reduced positions, causing the price to fluctuate downward and hit a low of $2,842/mt. Subsequently, LME zinc gradually recovered some losses and rose above the daily average line, fluctuating around it toward the end of the session. It finally closed down at $2,867/mt, a decline of $6/mt or 0.21%. Trading volume decreased to 94,800 lots, while open interest fell by 989 lots to 200,000. On September 9, LME zinc inventory dropped by 2,050 mt to 51,025 mt, a decrease of 3.86%. Overnight, LME zinc formed a bearish candlestick, with support from the 10/60-day daily average lines. Currently, US non-farm payrolls are expected to be revised down by 911,000, reflecting a relatively weak labor market. Meanwhile, overseas inventories continued to decline, keeping LME zinc in a fluctuating trend.

Overnight, the most-traded SHFE zinc 2510 contract opened at 22,160 yuan/mt. Early in the session, bulls increased positions, briefly pushing the price up to 22,190 yuan/mt before bears added positions, driving it down to a low of 22,110 yuan/mt. Subsequently, bulls and bears engaged in a tug-of-war, with the price fluctuating around 22,125 yuan/mt. It finally closed up at 22,130 yuan/mt, a gain of 5 yuan/mt or 0.02%. Trading volume decreased to 38,266 lots, while open interest rose by 450 lots to 109,000. Overnight, SHFE zinc formed a small bearish candlestick, supported by the lower Bollinger Band. Currently, spot market activity remains relatively subdued across regions, and the peak consumption season for downstream industries still requires time to materialize. However, the continuous decline in overseas inventories continues to provide some support for SHFE zinc's bottom.