Market Focuses on Uncertainty of Tariff Policy, SHFE Zinc Fluctuates [SMM Zinc Morning Comment]

SMM February 27 News:

Overnight, the LME zinc contract opened at $3,388/mt. At the beginning of the session, bulls and bears intertwined, and LME zinc briefly rose to a high of $3,398.5/mt. Subsequently, bears increased their positions, and the center of LME zinc moved downward, touching a low of $3,338/mt during European trading hours. Later, LME zinc fluctuated and finally closed down at $3,366.5/mt, down $20.5/mt, a decline of 0.61%. The trading volume increased to 9,909 lots, and open interest increased by 616 lots to 230,000 lots. Overnight, LME zinc recorded a small bearish candlestick. Amid tariff chaos and the advancement of US-Iran negotiations, the US dollar remained strong, non-ferrous metals were under pressure, and the center of LME zinc moved downward. LME zinc is expected to fluctuate today.

Overnight, the most-traded SHFE zinc 2604 contract opened at 24,525 yuan/mt. At the beginning of the session, SHFE zinc fluctuated downward all the way to a low of 24,470 yuan/mt. Later, bears increased their positions, and SHFE zinc fluctuated upward, touching a high of 24,625 yuan/mt towards the end of the session, finally closing flat at 24,570 yuan/mt. The trading volume decreased to 43,454 lots, and open interest increased by 205 lots to 92,967 lots. Overnight, SHFE zinc recorded a small bullish candlestick. The market focused on the uncertainty of tariff policies, while domestically, the market was still in the post-holiday recovery phase, and domestic inventory accumulated. SHFE zinc mainly fluctuated.
 

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