Affected by LME, SHFE zinc recorded a bearish candlestick [SMM zinc morning comment]

Overnight, LME zinc opened at $3,493.5/mt, edged down in early trading, then surged to a high of $3,525/mt before the futures quickly pulled back. During European trading hours, the price fell to $3,445/mt and consolidated at lows, then edged up slightly near the close, finally closing down at $3,487/mt, down $13/mt, or 0.37%. Trading volume decreased to 94,136 lots, and open interest increased by 236 lots to 261,000 lots. Overnight LME zinc formed a bearish candlestick, with support from the lower Bollinger Band below. Renewed US-Iran tensions sparked inflation worries, bolstering market expectations of rising interest rates, and LME zinc's center pulled back.

Overnight, the most-traded SHFE zinc 2608 contract opened at 24,330 yuan/mt, briefly touched a high of 24,360 yuan/mt in early trading, then bulls reduced positions, causing the price to drop quickly to a low of 24,205 yuan/mt, consolidated during the session, stabilized and edged up slightly near the close, finally closing down at 24,290 yuan/mt, down 180 yuan/mt, or 0.74%. Trading volume decreased to 56,884 lots, and open interest decreased by 2,677 lots to 99,375 lots. Overnight SHFE zinc formed a small bearish candlestick, with the 10- and 60-day moving averages above exerting pressure and the 5-day moving average below providing support. Affected by LME, SHFE zinc's center moved lower overnight. Although social inventory saw a slight destocking, overall levels remained high, and combined with pronounced off-season characteristics in end-use consumption, price upside remains capped.

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