SHFE/LME price ratio continues to decline, SHFE zinc fluctuates mainly [SMM Zinc Morning Comment]

SMM September 17:

Overnight, the LME zinc contract opened at $2,982/mt. It edged down initially and touched a low of $2,961/mt during European trading hours. Subsequently, bears reduced their positions, and LME zinc fluctuated upward, reaching a high of $3,003.5/mt before closing. It finally settled at $2,984.5/mt, up $2.5/mt or 0.08%. Trading volume fell to 11,350 lots, and open interest dropped by 2,659 lots to 216,000 lots. Overnight, LME zinc formed a small bullish candlestick. LME zinc inventory continued to decline, and the market bet on a US Fed interest rate cut this week, which weighed on the US dollar. LME zinc continued to rise, but upward pressure remained. It is expected to fluctuate at highs today.

Overnight, the most-traded SHFE zinc 2510 contract opened at 22,330 yuan/mt. At the beginning, bears reduced positions, and SHFE zinc quickly rose to a high of 22,365 yuan/mt. Subsequently, due to insufficient upward momentum, it fluctuated downward and finally settled at 22,290 yuan/mt, up 35 yuan/mt or 0.16%. Trading volume decreased to 48,493 lots, and open interest fell by 3,330 lots to 81,661 lots. Overnight, SHFE zinc formed a small bearish candlestick. Domestic peak consumption season failed to materialize, and the SHFE/LME zinc price ratio continued to decline. The market focused on the opening of the zinc ingot export window. It is expected to fluctuate today.