The fundamentals of weak demand remain unchanged, SHFE zinc fluctuates at high levels [SMM Morning Comment]

US Fed Governor Bowman: If inflation continues to decline, it will support a rate cut; Goldman Sachs: US non-farm employment figures may be revised down by up to 1 million over the past year; Swedish central bank cuts rates by 25 basis points again; Biden says Hamas is abandoning the agreement; the new loan prime rate remains unchanged; eight departments: promote the replacement of batteries in old urban new energy buses.

Overnight, LME zinc opened at $2,797/mt, and after the opening, LME zinc moved down along the daily average line to a low of $2,763/mt. It then rebounded from the low and fluctuated upwards, reaching a high of $2,834/mt before falling again below the daily average line. At the end of the session, LME zinc fluctuated at a low level and finally closed up at $2,794.5/mt, an increase of $4/mt or 0.14%. Trading volume increased to 10,097 lots, and open interest decreased by 1,881 lots to 215,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 40-day moving average forming resistance above. LME inventory decreased by 1,200 mt to 258,800 mt, a decrease of 0.46%. Market expectations for a US Fed rate cut in September increased, the US dollar index weakened, and LME zinc rebounded during the session, with the overall focus remaining stable.

Overnight, the most-traded SHFE zinc 2410 contract opened at 23,445 yuan/mt. SHFE zinc initially reached a high of 23,495 yuan/mt, then fluctuated downwards after the opening. Near the end of the session, SHFE zinc hit a low of 23,210 yuan/mt and finally closed up at 23,280 yuan/mt, an increase of 10 yuan/mt or 0.04%. Trading volume increased to 77,648 lots, and open interest increased by 2,635 lots to 99,262 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the 5-day moving average providing support below. Influenced by the overseas futures market, SHFE zinc opened higher. However, the weak domestic demand trend remained unchanged, continuously dragging down zinc prices, with SHFE zinc slightly rising.