SHFE Zinc Records a Bullish Candlestick with No Lower Shadow, Awaiting Further Macro Guidance [SMM Zinc Morning Comment]

SMM October 20 News:

      Last Friday, LME zinc opened at $2,963/mt. At the beginning of the session, bulls reduced their positions, causing LME zinc to fluctuate downward, hitting a low of $2,914/mt during European trading hours. It then fluctuated upward, reaching a high of $2,972/mt in the night session, and finally closed down at $2,942.5/mt, down $25.5/mt, a decrease of 0.86%. Trading volume increased to 11,000 lots, while open interest decreased by 279 lots to 224,000 lots. Last Friday, LME zinc formed a long lower shadow bearish candlestick. Trump softened his previous tough stance on trade, boosting the US dollar index and putting pressure on nonferrous metals. However, LME zinc inventory remained relatively tight, providing some support to prices. LME zinc is expected to fluctuate today.

      Last Friday, the most-traded SHFE zinc 2512 contract opened lower with a gap at 21,830 yuan/mt, which was also the intraday low. Subsequently, bulls increased their positions, leading to a brief rise in SHFE zinc. However, due to insufficient upward momentum, it gradually pulled back, finally closing up at 21,855 yuan/mt, up 25 yuan/mt, an increase of 0.11%. Trading volume decreased to 47,508 lots, while open interest increased by 7,282 lots to 116,000 lots. Last Friday, SHFE zinc formed a bullish candlestick with no lower shadow. Macro sentiment remained bearish, and domestic surplus expectations persisted. The spot export window opened, with a certain volume of spot cargo already being exported. The domestic oversupply situation remained unchanged. SHFE zinc is expected to fluctuate today.