Domestic Fundamentals Remain Unchanged, But SHFE Zinc Bottom Expected to Have Some Support [SMM Zinc Morning Comment]

SMM September 10:

Overnight, the LME zinc contract opened at $2,865.00/mt, initially touched a low of $2,857.5/mt, then fluctuated upward throughout the session, reaching a high of $2,892.00/mt before closing at $2,887.50/mt, up $20.5/mt, a gain of 0.72%. The trading volume was 87,370 lots, and open interest increased by 1,496 lots to 201,000 lots. Overnight, LME zinc inventory decreased by 200 mt to 50,825 mt, a drop of 0.39%. Overnight, LME zinc formed a bullish candlestick, with support from the 10-day and 60-day daily average moving lines below. US August PPI data fell more than expected, and market expectations for additional interest rate cuts continued to grow. Meanwhile, overseas inventories decreased, pushing the center of LME zinc prices upward.

Overnight, the most-traded SHFE zinc 2510 contract opened at 22,205 yuan/mt, initially moved down to touch a low of 22,145 yuan/mt, then rose above the daily average moving line as bears reduced positions, reaching a high of 22,275 yuan/mt before pulling back toward the end of the session, finally closing at 22,245 yuan/mt, up 30 yuan/mt, a gain of 0.14%. Trading volume decreased to 46,330 lots, and open interest fell by 1,402 lots to 102,000 lots. Overnight, SHFE zinc formed a bullish candlestick, with support from the lower Bollinger Band below. Domestic supply remains loose, while the recovery in consumption vitality still requires time to materialize. Meanwhile, continuously declining overseas zinc inventories continue to provide some support to the bottom of zinc prices.