SHFE Zinc Records Three-Day Winning Streak, Supported by Various Moving Averages Below [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,204.5/mt. At the beginning of the session, it dipped to a low of $3,203/mt, then bulls increased positions, pushing the price to continue rising, touching a high of $3,268/mt. It maintained a strong trend towards the close, finally settling up at $3,245.5/mt, an increase of $37.5/mt or 1.17%. Trading volume rose to 120,000 lots, and open interest increased by 4,650 lots to 236,000 lots. Overnight, LME zinc recorded a five-day winning streak, supported by the upper Bollinger Band. Currently, international regional disputes remain relatively tense, while US Fed Governor Milan signaled that more than 100 basis points of interest rate cuts will be needed in 2026, and the center of LME zinc continues to rise.

Overnight, the most-traded SHFE zinc 2602 contract opened at 24,300 yuan/mt. Early in the session, bears reduced positions, pushing SHFE zinc up to a high of 24,515 yuan/mt, then it pulled back slightly to a low of 24,240 yuan/mt, maintaining a fluctuating but relatively strong trend. It finally settled up at 24,385 yuan/mt, an increase of 90 yuan/mt or 0.37%. Trading volume decreased to 87,210 lots, and open interest fell by 1,540 lots to 94,919 lots. Overnight, SHFE zinc recorded a three-day winning streak, supported by various moving averages. Driven by the strong performance of LME and other base metals, the center of the daily candlestick for SHFE zinc continues to rise. However, constrained by expectations of a slight increase in domestic supply and mediocre demand fundamentals, further upward momentum for SHFE zinc is expected to face some pressure.

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