Outside China Geopolitical Disturbances, SHFE Zinc Edged Up [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,534/mt, quickly rose to a high of $3,547.5/mt in early trading, then bulls reduced positions, and LME zinc rapidly fell to a low of $3,513/mt during European trading. Subsequently, with bulls and bears intertwined, LME zinc fluctuated and eventually settled down at $3,534.5/mt, losing $6/mt or 0.17%. Trading volume dropped to 9,816 lots, and open interest decreased by 151 lots to 234,000 lots. Overnight, LME zinc recorded a small bullish candlestick. Geopolitical situations were repeated, the US dollar edged lower and weakened, while funds had a stalemate at highs between bulls and bears, and LME zinc's center moved slightly higher.

Overnight, the most-traded SHFE zinc 2607 contract opened at 24,700 yuan/mt, briefly fell to a low of 24,620 yuan/mt in early trading, then bulls added positions, and SHFE zinc fluctuated upward to reach a high of 24,795 yuan/mt at the end of the session, eventually settling up at 24,770 yuan/mt, gaining 140 yuan/mt or 0.57%. Trading volume decreased to 43,112 lots, and open interest increased by 1 lot to 91,906 lots. Overnight, SHFE zinc recorded a small bullish candlestick, with the 5-day and 10-day moving averages overhead forming resistance. Macro disturbances were frequent. Fundamentally, China's end-use consumption weakened, social inventory further built up, but China's zinc concentrate TCs further declined, providing some support for SHFE zinc. SHFE zinc's center moved up, and it is expected that SHFE zinc will fluctuate today.

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