Consumption Pressure Persists, SHFE Zinc in the Doldrums [SMM Zinc Morning Comment]

SMM September 24 News:

Overnight, LME zinc opened at $2,902.5/mt, initially touched a high of $2,904.5/mt, then fluctuated downward after opening, hit a low of $2,852/mt during the session before rebounding above the daily average line, and finally closed down at $2,289.5/mt, down $10.5/mt, a decrease of 0.36%. Trading volume decreased to 8,435 lots, and open interest increased by 493 lots to 216,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 5-day moving average forming resistance overhead. The US dollar index maintained a fluctuating trend. On the macro front, the US Fed provided no further clear guidance on interest rate cuts. However, LME zinc inventory continued to decline, and with support from low inventory, the center of LME zinc remained basically stable.

Overnight, the most-traded SHFE zinc 2511 contract opened at 21,895 yuan/mt, quickly rose after opening to touch a high of 21,985 yuan/mt, then fluctuated around the daily average line, and finally closed up at 21,935 yuan/mt, up 90 yuan/mt, an increase of 0.41%. Trading volume decreased to 49,488 lots, and open interest decreased by 989 lots to 13.9 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the lower Bollinger Band providing support. Affected by the typhoon, some downstream zinc alloy plants in Guangdong temporarily halted production recently, consumption performance was sluggish, and upward pressure on zinc prices remained. SHFE zinc maintained a trend in the doldrums.