SHFE zinc recorded a bullish candlestick, and the short-term price is expected to continue to consolidate at highs [SMM zinc morning comment]

Last Friday, LME zinc opened at $3,434.5/mt, edged down to $3,387/mt in early trading, then bears reduced positions, driving the futures to continue rebounding, prices steadily rose above the daily average line, near the close surged to a high of $3,503.5/mt, finally closed up at $3,500/mt, up $62/mt, or 1.80%. Trading volume increased to 106,000 lots, and open interest decreased by 297 lots to 261,000 lots. Last Friday, LME zinc recorded a bullish candlestick, with the 10-day and 60-day moving averages below providing support. PCE data met expectations and coupled with falling oil prices, the market slightly cooled expectations for US Fed rate hikes, the US dollar index declined, and LME zinc's center moved higher.

Last Friday, the most-traded SHFE zinc 2608 contract opened at 24,005 yuan/mt, moved sideways along the daily average line in early trading, edged down to 23,940 yuan/mt during the session, then bears reduced positions, driving prices to keep rising, SHFE zinc steadily climbed above the daily average line and touched a high of 24,420 yuan/mt, near the close consolidated slightly at high levels, finally closed up at 24,400 yuan/mt, up 455 yuan/mt, or 1.90%. Trading volume increased to 76,557 lots, and open interest decreased by 2,028 lots to 108,000 lots. Last Friday, SHFE zinc recorded a bullish candlestick, with the 10-day and 40-day moving averages above exerting pressure. Currently, China's zinc ingot inventories are at high levels, combined with seasonal weakening of end-use consumption, the weak fundamentals are exerting pressure on SHFE zinc prices. However, TCs at the mine side continue to hover at low levels, still providing some support for zinc prices. Amid intertwined bullish and bearish factors, SHFE zinc is expected to maintain a sideways pattern in the short term.

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