Capital Continues to Flow In, SHFE Zinc Rises [SMM Zinc Morning Comment]

Overnight, the LME zinc contract opened at $3,212/mt. In early trading, it fluctuated considerably along the daily moving average. During European trading hours, it touched a low of $3,197.5/mt. Subsequently, bears exited their positions, and LME zinc rose all the way, reaching a high of $3,292/mt towards the session's close. It finally settled at $3,290/mt, up $88/mt or 2.75%. Trading volume decreased to 16,389 lots, and open interest fell by 3,909 lots to 228,000 lots. Overnight, LME zinc recorded a large bullish candlestick. Despite retail sales data exceeding expectations, political uncertainty surrounding the US Fed's independence persisted, the US dollar index closed lower, and coupled with geopolitical risks, precious metals continued to rally, driving LME zinc further upward.

Overnight, the most-traded SHFE zinc 2603 contract opened at 24,740 yuan/mt. In early trading, it quickly dipped to a low of 24,475 yuan/mt. Later, bulls increased their positions, and SHFE zinc rapidly rose to a high of 24,945 yuan/mt. It finally settled at 24,795 yuan/mt, up 320 yuan/mt or 1.31%. Trading volume decreased to 175,000 lots, and open interest increased by 9,294 lots to 130,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick. Overseas macro sentiment remained relatively positive, domestic funds continued to flow in, capital crowding was high, and SHFE zinc continued to see its price center shift upward.

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