Macro and Fundamentals Resonate, Zinc Prices Fluctuate at Highs [SMM Zinc Morning Comment]

Last Friday, the LME zinc contract opened at $3,241/mt. In early trading, it fluctuated around the daily average line. During European trading hours, the price center shifted slightly lower, testing a low of $3,214/mt. Subsequently, bulls bought on dips, pushing the price up to touch a high of $3,278.5/mt. It finally closed higher at $3,269/mt, up $36/mt, a gain of 1.11%. Trading volume decreased to 9,468 lots, while open interest increased by 1,359 lots to 230,000 lots. Last Friday, LME zinc recorded a bullish candlestick, with the daily candlestick's center moving upward and the MACD turning from bearish to positive. Last Friday, geopolitical risks escalated, the US dollar weakened, non-ferrous metals collectively rebounded, gold broke through the $5,000 mark, and the center of LME zinc prices shifted higher.

Last Friday, the most-traded SHFE zinc 2603 contract opened at 24,715 yuan/mt. In early trading, it quickly touched a high of 24,880 yuan/mt, but then upward momentum was insufficient, causing the price center to pull back and consolidate near the daily average line. It finally closed higher at 24,690 yuan/mt, up 125 yuan/mt, a gain of 0.51%. Trading volume decreased to 86,008 lots, while open interest increased by 3,607 lots to 124,000 lots. Last Friday, SHFE zinc recorded a small bearish candlestick, with various moving averages below providing support. Macro sentiment drove the zinc price center higher. On the fundamentals side, some domestic smelters implemented production cuts, and social inventory recorded another decrease, providing bottom support for zinc prices.

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