SHFE Zinc Breaks Through 24,000 Mark, Expected to Hover at Highs in Short Term [SMM Zinc Morning Comment]

Overnight, the LME zinc contract opened at $3,139.5/mt. After initially dipping to $3,136/mt, it continued to climb, reaching a high of $3,213.5/mt during the night session, and finally settled at $3,208/mt, up $81/mt, or 2.59%. Trading volume increased to 94,523 lots, and open interest rose by 1,084 lots to 231,000 lots. Overnight, LME zinc recorded a four-day winning streak, supported by various moving averages below. Currently, tightening geopolitical situations in some international regions, combined with the boost from strong gains in base metals such as copper, led to continuous inflows of bullish funds into the futures, pushing the price center of LME zinc steadily higher.

Overnight, the most-traded SHFE zinc 2602 contract opened at 23,775 yuan/mt. At the beginning of the session, bulls increased their positions, driving SHFE zinc to quickly rise and surge to 24,150 yuan/mt. Towards the end of the session, some bulls reduced positions and exited, causing a slight pullback in SHFE zinc. It finally settled at 24,030 yuan/mt, up 210 yuan/mt, or 0.88%. Trading volume was 73,828 lots, and open interest increased by 4,728 lots to 94,670 lots. Overnight, SHFE zinc recorded a bullish candlestick, supported by various moving averages below. Driven by the overseas market overnight, SHFE zinc prices broke through the high since February last year, with the center of the daily candlestick showing a significant upward shift. Although the fundamental picture has not changed significantly, numerous macro disturbances and the influence of other metals have provided relatively strong bullish momentum. It is expected that SHFE zinc will hover at highs in the short term.

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