LME Trend Boosts SHFE, Night Session SHFE Zinc Consolidates at Highs [SMM Zinc Morning Comment]

SMM July 15 news:

Overnight, LME zinc opened at $3,565/mt, dipped to a low of $3,554/mt in early trading, then drifted higher throughout the session, touching a high of $3,617.5/mt during the night session before retreating from highs to below the daily average line, finally closing up at $3,579/mt, up $12/mt or 0.34%. Trading volume fell to 8,180 lots, and open interest decreased by 9,456 lots to 257,000 lots. Overnight, LME zinc recorded a bullish candlestick, with support from the 10-day moving average below. US CPI data came in lower than expected, market expectations for US Fed interest rate hikes decreased, the US dollar index weakened, and LME zinc ingot inventory continued to draw down, prompting LME zinc to recover from lows. It is expected to maintain a fluctuating trend in the short term.

Overnight, the most-traded SHFE zinc 2609 contract opened at 24,945 yuan/mt, touched a high of 24,950 yuan/mt, dipped to a low of 24,865 yuan/mt, and finally closed up at 24,890 yuan/mt, up 50 yuan/mt or 0.2%. Trading volume fell to 23,522 lots, and open interest increased by 1,963 lots to 88,019 lots. Overnight, SHFE zinc recorded a bearish candlestick, with support from the 5-day moving average below. Boosted by the LME market trend, SHFE zinc fluctuated at highs during the night session. However, on the fundamentals side, off-season consumption continued, and China's zinc ingot inventory did not show significant destocking, weighing on zinc prices to some extent. Overall, SHFE zinc continued to consolidate at highs.

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