SMM Zinc Market Morning Comment (Aug 15)

Overnight, LME zinc opened at $2,695/mt. At the beginning of the session, with an increase in short positions, LME zinc's price center shifted downward to a low of $2,677/mt. During European trading hours, with an increase in long positions, LME zinc fluctuated upwards to a high of around $2,752/mt and then consolidated. Towards the end of the session, as funds exited, LME zinc's price center shifted downward to around $2,700/mt and consolidated, finally closing up at $2,705/mt, an increase of $17.5/mt or 0.56%. Trading volume increased to 12.2 lots, and open interest increased by 1,117 lots to 219,000 lots. Overnight, LME zinc recorded a bullish candlestick, with LME zinc inventory decreasing by 875 mt to 262,275 mt, a decline of 0.33%. With US CPI data coming in lower than expected, the weak dollar and expectations of a US Fed rate cut boosted LME zinc, causing its center to shift upward. It is expected that LME zinc will fluctuate today.

Overnight, the most-traded SHFE zinc 2410 contract opened at 22,765 yuan/mt. At the beginning of the session, SHFE zinc prices briefly moved upwards to a high of 22,850 yuan/mt. Subsequently, with an increase in short positions, SHFE zinc fluctuated downward, reaching a low of 22,510 yuan/mt towards the end of the session, and finally closed down at 22,530 yuan/mt, a decrease of 430 yuan/mt or 1.87%. Trading volume decreased to 65,115 lots, and open interest increased by 1,621 lots to 85,862 lots. Overnight, SHFE zinc recorded a bearish candlestick, dragged down by macroeconomic sentiment. The widening M1-M2 gap and weak domestic demand dampened market confidence, leading to a pullback in SHFE zinc. It is expected that SHFE zinc prices will mainly fluctuate and consolidate today.