SHFE Zinc Fluctuates Weakly [SMM Morning Review]

Overnight, LME zinc opened at $2,786/mt, initially declined to a session low of $2,757.5/mt, then quickly rebounded to a session high of $2,829/mt, and finally closed at $2,819/mt, up $29/mt, or 1.04%. Trading volume decreased to 9,735 lots, and open interest increased by 4,022 lots to 235,000 lots. Overnight, LME zinc recorded a bullish candlestick, with support from the lower Bollinger Bands. LME zinc stocks decreased by 3,250 mt to 250,950 mt, a decrease of 1.28%. The US dollar index slightly declined, but hawkish comments from US Fed officials continued, and market cautious sentiment towards rate cuts was restored, leading to fluctuating LME zinc prices.

Overnight, the most-traded SHFE zinc contract (2408) opened at 23,315 yuan/mt, initially dropped to a session low of 23,315 yuan/mt, then fluctuated narrowly around the daily moving average during the night session, reaching a session high of 23,455 yuan/mt, and finally closed at 23,395 yuan/mt, up 195 yuan/mt, or 0.84%. Trading volume decreased to 66,252 lots, and open interest increased by 2,375 lots to 84,330 lots. Overnight, SHFE zinc recorded a bullish candlestick, with support from the lower Bollinger Bands. In May, the value-added of industrial enterprises above designated size increased by 5.6% YoY, indicating stable economic operation. However, entering the off-season for consumption, the fundamentals of zinc showed no significant improvement, and SHFE zinc continued to fluctuate weakly.