LME Continues to Boost SHFE Zinc [SMM Zinc Morning Comment]

SMM October 22:

Overnight, the LME zinc contract opened at $3,026.5/mt. At the beginning of the session, bulls increased their positions, and LME zinc fluctuated upward, touching a high of $3,050/mt during European trading hours. Subsequently, bulls took profits, causing LME zinc to plunge and hit a low of $2,995/mt in the night session. It finally closed up at $3,019.5/mt, gaining $26/mt. The price center then slowly moved higher, and it eventually closed up at $3,022.5/mt, rising by $3/mt, or 0.1%. Trading volume increased to 15,520 lots, and open interest rose by 300 lots to 222,000 lots. Overnight, LME zinc recorded a small bearish candlestick. LME zinc inventory continued destocking, and the LME backwardation structure remained relatively high, indicating persistent risks. However, macro sentiment showed some uncertainty. LME zinc is expected to fluctuate at highs today.

Overnight, the most-traded SHFE zinc 2512 contract opened at 22,245 yuan/mt. At the beginning of the session, SHFE zinc briefly touched a low of 22,215 yuan/mt. Subsequently, bears reduced their positions, and SHFE zinc fluctuated upward throughout the session, with the closing price being the highest price of the day. It eventually closed flat at 22,345 yuan/mt. Trading volume decreased to 57,310 lots, and open interest fell by 1,988 lots to 123,000 lots. Overnight, SHFE zinc recorded a bullish candlestick with no upper shadow. The stronger performance in the overseas market continued to boost the domestic market's rise. The market still has policy expectations for the Fourth Plenary Session, supporting SHFE zinc's rise. SHFE zinc is expected to fluctuate at highs today.