Overnight, LME zinc opened at $3,492/mt, fluctuating around the daily average line in early trading. During European trading hours, it hit a high of $3,507/mt before bears added positions to push LME zinc down in a stepwise decline, touching a low of $3,404/mt in the night session. At the end of the session, LME zinc attempted to break above but was capped by the daily average line and pulled back again, ultimately settling down $93.5/mt, or 2.67%, at $3,408/mt. Trading volume increased to 19,785 lots, while open interest rose by 325 lots to 266,000 lots. Overnight, LME zinc formed a large bearish candlestick, with the center of the daily candlestick shifting lower and the MACD bearish histogram expanding. A stronger US dollar and disruptions in the Strait of Hormuz weighed on nonferrous metals, shifting LME zinc's center lower.
Overnight, the most-traded SHFE zinc 2608 contract opened lower with a gap at 24,025 yuan/mt. In early trading, it moved along the daily average line, then hit a session high of 24,195 yuan/mt. Subsequently, with bears adding positions and longs closing, SHFE zinc's center shifted lower but remained above the daily average line, hitting a low of 23,935 yuan/mt. It eventually settled down 325 yuan/mt, or 1.33%, at 24,045 yuan/mt. Trading volume decreased to 79,256 lots, while open interest increased by 2,118 lots to 103,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick, but the center of the daily candlestick moved lower. The lower Bollinger Band above exerted downward pressure, and the KDJ indicator showed a widening downward divergence. Overnight, nonferrous metals broadly declined, and zinc prices followed suit. On the fundamentals side, as TCs fell, smelters' losses widened. However, no significant production cuts have yet been observed, and with downstream purchasing enthusiasm weakening during the off-season, zinc prices fluctuated downward. Watch for support at the psychologically important 24,000 yuan/mt level.
Data source statement: Except for public information, all other data are based on public information, market communication, and SMM's internal database models, processed by SMM, and are for reference only, not constituting decision-making advice.
