LME Zinc Prices Boosted SHFE, SHFE Zinc Opened Higher with a Gap [SMM Zinc Morning Comment]

SMM April 23:

Overnight, LME zinc opened at $3,446/mt. After the open, LME zinc fluctuated upward throughout the session, dipping to a low of $3,433.5/mt early in the session. Near the close, LME zinc touched a high of $3,491.5/mt, ultimately closing higher at $3,466.5/mt, up $29.5/mt or 0.86%. Trading volume decreased to 10,210 lots, while open interest increased by 3,628 lots to 229,000 lots. Overnight, LME zinc posted a bullish candlestick, with the 5-day moving average providing support below. Trump extended the ceasefire period with Iran, non-ferrous metals rose broadly, and LME zinc ingot inventory continued to decline. The LME Cash-3M contango narrowed notably, and LME zinc fluctuated higher with its center continuing to shift upward.

Overnight, the most-traded SHFE zinc 2606 contract opened at 24,360 yuan/mt. After the open, SHFE zinc hovered at highs, dipping to a low of 24,300 yuan/mt early in the session. During the session, SHFE zinc touched a high of 24,460 yuan/mt, ultimately closing higher at 24,395 yuan/mt, up 145 yuan/mt or 0.6%. Trading volume increased to 57,090 lots, while open interest increased by 7,625 lots to 98,700 lots. Overnight, SHFE zinc posted a bullish candlestick with the KDJ indicator widening. Boosted by LME price movements, SHFE zinc opened higher with a gap in the night session. Additionally, as the SHFE/LME price ratio continued to run at low levels, the export window for China's zinc ingots showed a tendency to open, and SHFE zinc maintained a fluctuating trend at highs.

Data source statement: Data other than publicly available information is derived from publicly available information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.