SMM Zinc Market Morning Comment (Jul 17)

Overnight, LME zinc opened at $2,952.5/mt, reaching a high of $2,958/mt, then shifting its focus to around $2,890/mt, and finally closed at $2,896/mt, down $56/mt, a decrease of 1.9%. Trading volume increased to 10,451 lots, and open interest decreased by 1,179 lots to 230,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 10-day moving average above forming resistance and the MACD bearish candlestick expanding. Overnight, LME inventory continued to decrease by 1,375 mt to 246,100 mt, a drop of 0.56%. As the better-than-expected US CPI data boosted the dollar, LME zinc ran weak.

Overnight, the most-traded SHFE 2409 zinc contract opened lower at 24,090 yuan/mt, dipping to 23,980 yuan/mt, then consolidating around 24,100 yuan/mt, and finally closed at 24,120 yuan/mt, down 245 yuan/mt, a decrease of 1.01%. Trading volume decreased to 66,147 lots, and open interest increased by 5,635 lots to 88,786 lots. Overnight, SHFE zinc recorded a bullish candlestick, but the daily K-line focus shifted downward, and the KDJ indicator expanded downward. Overnight, dragged down by weak overseas futures and the expectation of increased supply on the fundamentals, SHFE zinc ran at a low level, with attention on the support at the 24,000 yuan/mt mark.