SMM Zinc Market Morning Comment (Jul 18)

Overnight, LME zinc opened at $2,890/mt, quickly reaching a high of $2,904.5/mt, then hitting a low of $2,841/mt, and finally closed at $2,842/mt, down $54/mt, a decrease of 1.86%. Trading volume increased to 10,587 lots, and open interest decreased by 5,828 lots to 225,000 lots. Overnight, LME zinc recorded a bearish candlestick, with various moving averages above forming resistance and the daily K-line focus shifting down. Overnight, LME inventory held flat at 246,100 mt. With subdued global zinc consumption and supply surplus, bulls exited, leading LME zinc to lead the decline.

Overnight, the most-traded SHFE 2409 zinc contract opened at 23,800 yuan/mt, reaching a high of 23,855 yuan/mt, then dropping to 23,640 yuan/mt by the end of the trading session, and finally closed at 23,630 yuan/mt, down 385 yuan/mt, a decrease of 1.6%. Trading volume decreased to 84,614 lots, and open interest increased by 3,705 lots to 94,636 lots. Overnight, SHFE zinc recorded three consecutive bearish candlesticks, with the MACD bearish column expanding. Fundamentally, the market has clearly started to focus on the weakening consumption, which has surpassed the supply shortage contradiction, causing the zinc price focus to continuously shift downward.