Market Sentiment Unchanged, SHFE Zinc Fluctuates at Low Levels [SMM Morning Comment]

SMM, Sep 9: U.S. August non-farm payrolls saw the largest increase since June this year; the unemployment rate ended a four-month rise; US Fed Governor Waller: Will support early rate cuts if appropriate, and larger rate cuts if necessary; U.S. Treasury Secretary Yellen: Currently does not see warning signs of financial risks; Israeli negotiators believe that the possibility of reaching a Gaza hostage agreement is "close to zero"; the National Development and Reform Commission urgently allocated 200 million yuan to support Hainan and Guangdong in post-typhoon emergencies; PBOC halted gold purchases for the fourth consecutive month, with foreign exchange reserves remaining above $3.2 trillion for nine consecutive months; China Securities Regulatory Commission: Extended the restriction period for former employees' stock holdings.
Last Friday, LME zinc opened at $2737/mt, fluctuated around the daily moving average after the opening, climbed during the midday, reached a high of $2780/mt, then fell back, reaching a low of $2702/mt at the end of the session, and finally closed down at $2705/mt, a decrease of $25.5/mt, or 0.93%. Trading volume decreased to 11,819 lots, and open interest increased by 5,177 lots to 230,000 lots. Last Friday, LME zinc formed a bearish candlestick, with LME zinc inventory declining by 900 mt to 238,375 mt, a decrease of 0.38%, the upper 5-day moving average formed resistance. US August non-farm payrolls data was lower-than-expected, intensifying concerns about the economic slowdown, and the bearish macroeconomic conditions continued to pressure zinc prices, causing LME zinc to sink.
Last Friday, the most-traded SHFE zinc 2410 contract opened at 22,920 yuan/mt, initially climbed to 23,040 yuan/mt, then declined, reaching a low of 22,635 yuan/mt at the end of the session, and finally closed down at 22,690 yuan/mt, a decrease of 160 yuan/mt, or 0.70%. Trading volume increased to 112,000 lots, and open interest decreased by 819 lots to 94,479 lots. Last Friday, SHFE zinc formed a bearish candlestick, with the lower Bollinger Bands providing support. On the fundamentals side, weak demand continued to drag, with market bearish sentiment unchanged, SHFE zinc maintained low-level fluctuations.