Macro Sentiment Bearish, LME Zinc Move Downward [SMM Zinc Morning Comment]

SMM, Aug 14: Overnight, the US July PPI cooled more than expected; it is reported that Iran may delay retaliation if a permanent ceasefire is achieved in Gaza; the IEA lowered its forecast for global oil demand growth next year; China's July loan rates remained at historical lows; Shenzhen responded that the housing market purchase restriction policy has not been adjusted. Overnight, LME zinc opened at $2,745.5/mt, hitting the intraday high at the opening. Subsequently, LME zinc fluctuated along the daily moving average. During European trading hours, bulls reduced positions, causing LME zinc to quickly decline, with the focus shifting to around $2,688/mt, hitting a low of $2,678.5/mt, and finally closing down at $2,687.5/mt, down $8.5/mt, a decrease of 2.24%. Trading volume increased to 12,191 lots, and open interest decreased by 3,489 lots to 218,000 lots. Overnight, LME zinc recorded a bearish candlestick, with LME inventory increasing by 23,625 mt to 263,150 mt, an increase of 9.86%. The significant increase in LME zinc inventory, coupled with the US PPI data cooling more than expected, caused the focus of LME zinc to shift downward. It is expected that LME zinc will run weakly today.
Overnight, the most-traded SHFE zinc contract 2410 opened at 22,780 yuan/mt. At the beginning of the session, SHFE zinc briefly moved upward, hitting a high of 22,820 yuan/mt. Subsequently, shorts increased positions, causing SHFE zinc to fluctuate along the daily moving average, hitting a low of 22,590 yuan/mt, and finally closing down at 22,685 yuan/mt, down 275 yuan/mt, a decrease of 1.2%. Trading volume decreased to 52,571 lots, and open interest increased by 2,796 lots to 82,980 lots. Overnight, SHFE zinc recorded a bearish candlestick, affected by the US PPI cooling more than expected and the still poor domestic demand. SHFE zinc adjusted downward, and it is expected that SHFE zinc will mainly fluctuate today.