LME rise drives SHFE zinc up [SMM zinc morning comment]

SMM September 16:

Overnight, the LME zinc contract opened at $2,953/mt. At the beginning of the session, bulls increased their positions, and LME zinc fluctuated upward. However, the upward momentum was insufficient, and LME zinc then fluctuated downward, touching a low of $2,943.5/mt during the night session. Subsequently, bulls continued to add positions, and LME zinc fluctuated upward throughout the session, reaching a high of $2,985/mt before closing. It finally settled at $2,982/mt, up $26/mt, or 0.88%. Trading volume decreased to 11,876 lots, while open interest increased by 13,993 lots to 219,000 lots. Overnight, LME zinc recorded a small bullish candlestick. LME inventory continued to decline to 50,150 mt, and expectations for a US Fed interest rate cut this week persisted. With high capital concentration, LME zinc continued to rise, but upward pressure remains. It is expected that LME zinc will mainly fluctuate at highs today.

Overnight, the most-traded SHFE zinc 2510 contract opened at 22,290 yuan/mt. At the beginning of the session, SHFE zinc briefly fell to a low of 22,245 yuan/mt. Subsequently, bears reduced their positions, and SHFE zinc fluctuated upward, reaching a high of 22,370 yuan/mt before closing. It then consolidated around the daily average line and finally settled at 22,335 yuan/mt, up 25 yuan/mt, or 0.11%. Trading volume decreased to 48,000 lots, while open interest decreased by 2,597 lots to 89,406 lots. Overnight, SHFE zinc recorded a small bullish candlestick. Zinc ingot inventory continued to build up, and domestic consumption performed below expectations. Given the long-term trend of LME outperforming SHFE, the market is focused on the opening of the zinc ingot export window. It is expected that the center of SHFE zinc may continue to rise today, mainly fluctuating at highs.