Expectations of Easing Policies by Multiple Central Banks, LME Zinc Continues to Rise [SMM Zinc Morning Comment Oct 21]

Last Friday, LME zinc opened at $3,059/mt. After a brief dip to $3,033/mt at the beginning of the session, it followed the daily moving average and climbed stepwise, with the night session seeing its center of gravity shift to $3,085/mt. During this period, it reached a high of $3,096/mt and finally closed up at $3,089/mt, an increase of $45/mt or 1.48%. Trading volume decreased to 8,488 lots, and open interest increased by 700 mt to 253,000 lots. Last Friday, LME zinc recorded a bullish candlestick, with the middle Bollinger Band providing support below. LME zinc inventory decreased by 2,775 mt to 239,025 mt, a drop of 1.15%. LME zinc inventory recorded a reduction. Last Friday, boosted by expectations of easing monetary policies from multiple central banks, LME zinc fluctuated at highs.

Last Friday, the most-traded SHFE zinc 2411 contract opened at 25,200 yuan/mt. After quickly reaching a high of 25,250 yuan/mt at the beginning of the session, its center of gravity shifted below the daily moving average, with attempts to break above failing. It finally closed down at 25,160 yuan/mt, an increase of 190 yuan/mt or 0.76%. Trading volume decreased to 59,136 lots, and open interest decreased by 848 lots to 93,177 lots. Last Friday, SHFE zinc recorded a small bearish candlestick, with various moving averages providing support below. Domestically, there were proposals for easing monetary circulation policies, and more policies are expected to be introduced. However, actual consumption remains weak, and the momentum for zinc prices to rise is insufficient.