Geopolitical Turmoil Resurges, LME Drags Down SHFE Zinc [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,549/mt, briefly rising to touch a high of $3,520.5/mt, then bears added positions and LME zinc declined all the way to touch a low of $3,465.5/mt at the session's end, eventually closing down at $3,468.5/mt, down $77.5/mt or 2.19%. Trading volume increased to 17,248 lots, and open interest increased by 568 lots to 234,000 lots. Overnight, LME zinc formed a big bearish candlestick. Trump announced the resumption of “fierce strikes” against Iran, sparking market concerns over subsequent economic impact. The US dollar rebounded strongly, and LME zinc came under pressure and fell. It is expected to be mainly in the doldrums today.

Overnight, the most-traded SHFE zinc 2607 contract opened at 24,480 yuan/mt, briefly rising to touch a high of 24,580 yuan/mt, then bulls reduced positions and SHFE zinc fluctuated downward to touch a low of 24,190 yuan/mt at the session's end, eventually closing down at 24,280 yuan/mt, down 340 yuan/mt or 1.38%. Trading volume decreased to 93,109 lots, and open interest decreased by 678 lots to 85,923 lots. Overnight, SHFE zinc formed a big bearish candlestick. Geopolitical turmoil sparked market concerns over the subsequent economy, while China’s consumption remained weak. Under the lead of the external market, SHFE zinc closed lower. It is expected to fluctuate today.

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