SMM Zinc Market Morning Comment (Jul 5)

Overnight, LME zinc opened at $2,987.5/mt, briefly dipping to $2,974/mt, then reaching a high of $3,018/mt, and finally closed at $2,990/mt, up $7/mt or 0.23%. Trading volume was reduced to 6,219 lots, and open interest increased by 5,012 lots to 235,000 lots. Overnight, LME zinc recorded a long upper shadow bullish candlestick. LME zinc inventory decreased by 325 mt to 258,700 mt, a drop of 0.13%. Macro sentiment was bullish, with the US dollar index falling to a low point and rate cut expectations persisting. With concerns about zinc supply, LME zinc is expected to fluctuate today.

Overnight, the most-traded SHFE 2408 zinc contract opened at 24,770 yuan/mt, briefly reaching a high of 24,835 yuan/mt, then dipping to 24,570 yuan/mt, and finally closed at 24,800 yuan/mt, up 130 yuan/mt or 0.53%. Trading volume was reduced to 65,515 lots, and open interest increased by 1,071 lots to 90,552 lots. Overnight, SHFE zinc recorded a bullish candlestick. On the fundamentals side, supply shortage persisted due to mining issues, and downstream consumption remained weak, indicating continued upward pressure on SHFE zinc. SHFE zinc is expected to fluctuate today.