LME Performance Boosts SHFE, SHFE Zinc Center Rises [SMM Zinc Morning Comment]

SMM October 28 News:

Overnight, LME zinc opened at $3,044/mt. At the beginning of the session, it dipped to $3,029/mt. After opening, LME zinc basically fluctuated upward along the daily average line, reaching an intraday high of $3,060/mt, and finally closed up at $3,058.5/mt, up $39/mt, an increase of 1.29%. Trading volume decreased to 10,796 lots, and open interest decreased by 1,274 lots to 222,000 lots. Overnight, LME zinc recorded a bullish candlestick, supported by the 5-day daily average line below. China and the US conducted economic and trade consultations, easing global trade tensions. The US dollar index continued to weaken, coupled with no improvement in low LME inventory, multiple factors supported LME zinc to continue fluctuating upward.

Overnight, the most-traded SHFE zinc 2512 contract opened at 22,400 yuan/mt. At the beginning of the session, it reached a high of 22,440 yuan/mt. Subsequently, the zinc price basically fluctuated around the daily average line. Although it dipped slightly to a low of 22,345 yuan/mt during the session, it later rebounded again near the daily average line, finally closing up at 22,410 yuan/mt, up 45 yuan/mt, an increase of 0.2%. Trading volume decreased to 54,980 lots, and open interest decreased by 1,136 lots to 120,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, supported by the 5-day daily average line below. The LME zinc price provided some support to SHFE zinc's movement. Additionally, market macro sentiment improved amid China-US negotiations, and the zinc ingot export window remained open, leading to an upward shift in the price center for SHFE zinc as well.

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