Spot market transactions were relatively mediocre, and SHFE zinc recorded a bullish candlestick. [SMM Zinc Morning Comment]

SMM October 14 News:

       Overnight, LME zinc opened at $3,023.00/mt. At the beginning of the session, LME zinc fluctuated rangebound around the daily average line. During the European trading session, bulls reduced their positions, causing LME zinc to decline rapidly, touching a low of $2,911.5/mt, before rebounding slightly. It finally closed down at $2,953.5/mt, decreasing by $58.5/mt, a drop of 1.94%. Trading volume increased to 224,000 lots, while open interest decreased by 1,344 lots to 220,000 lots. On October 14, LME zinc inventory increased by 1,125 mt to 38,600 mt, a rise of 3.00%. Overnight, LME zinc recorded a large bearish candlestick, with the lower Bollinger Band providing some support. Yesterday, LME inventory increased to 38,600 mt; although it remains at a relatively low level, trade concerns caused the center of LME zinc to shift downward. Powell's neutral-to-dovish remarks provided some room for declines. Subsequent attention will be on US macro data performance.

       Overnight, the most-traded SHFE zinc 2511 contract opened lower with a gap at 22,020 yuan/mt. At the beginning of the session, bulls reduced their positions, causing SHFE zinc to probe lower to 21,915 yuan/mt. Subsequently, bears reduced their positions, leading SHFE zinc to fluctuate and rebound, touching a high of 22,070 yuan/mt towards the end of the session. It finally closed down at 22,055 yuan/mt, falling by 165 yuan/mt, a decline of 0.74%. Trading volume decreased to 66,972 lots, while open interest decreased by 4,168 lots to 91,026 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the lower Bollinger Band providing support. Currently, trading in various spot markets is relatively moderate, with downstream enterprises mostly making just-in-time procurement. High inventory is exerting some pressure on zinc price rises, and subsequent domestic inventory performance will be monitored.