LME Continues to Boost SHFE Zinc Maintains Fluctuating Trend [SMM Zinc Morning Comment]

SMM October 29 News:

Overnight, the LME zinc contract opened at $3,051/mt. After opening, it fluctuated downward, hitting a low of $3,008.5/mt during the session. Subsequently, LME zinc continued to pull back from the low, touched a high of $3,068/mt, and then hovered at highs, eventually closing down at $3,056.5/mt, down $2/mt or 0.07%. Trading volume increased to 11,155 lots, and open interest rose by 264 lots to 223,000 lots. Overnight, LME zinc formed a bullish candlestick, supported by the 20-day moving average below. The market awaits the upcoming US Fed interest rate decision. The US dollar index maintained a fluctuating trend, but LME zinc ingot inventory continued to draw down, and the LME backwardation structure remained strong, supporting LME zinc to hover at highs. Continued attention is paid to subsequent macro guidance.

Overnight, the most-traded SHFE zinc 2512 contract opened at 22,355 yuan/mt. After opening, SHFE zinc briefly maintained a fluctuating trend, then rose rapidly, touched a high of 22,435 yuan/mt, and then hovered at highs, eventually closing up at 22,410 yuan/mt, up 100 yuan/mt or 0.45%. Trading volume decreased to 54,176 lots, and open interest fell by 2,163 lots to 119,000 lots. Overnight, SHFE zinc formed a bullish candlestick, supported by the 10-day moving average below. The zinc export window remains open, and overseas zinc prices continue to boost domestic price movements. However, domestic smelters are operating actively, while peak season consumption performance is weaker than expected. Fundamentals may provide insufficient support for zinc prices, and SHFE zinc is expected to maintain a fluctuating trend.

Data Source Statement: Except for publicly available information, other data are processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and do not constitute decision-making advice.