Macro Sentiment Improved, LME Zinc Fluctuated at Highs [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,880/mt. At the beginning of the session, short positions increased, pushing LME zinc down to $2,848/mt. Subsequently, long positions entered at the lows, driving LME zinc to fluctuate upward, with the focus shifting to around $2,930/mt during European trading hours. During this period, it reached a high of $2,945/mt. Entering the night session, LME zinc briefly fell but was supported by the daily moving average. By the end of the session, the focus returned to around $2,930/mt, and it finally closed at $2,939.5/mt, an increase of $55.5/mt or 1.92%. Trading volume decreased to 11,574 lots, and open interest increased by 978 lots to 243,000 lots. Overnight, LME zinc recorded a large bullish candlestick, with the 10/20-day moving averages providing support. Overnight, LME inventory increased by 4,950 mt to 256,800 mt, an increase of 1.97%. LME inventory continued to rise. The US Fed's rate cut overnight led to a broad rise in non-ferrous metals, with LME zinc fluctuating at highs.

Overnight, the most-traded SHFE zinc 2411 contract opened at 24,100 yuan/mt. At the beginning of the session, short positions increased, pushing SHFE zinc down along the daily moving average, with the focus shifting to 23,890 yuan/mt. Subsequently, long positions entered and short positions closed, pushing SHFE zinc back to the daily moving average. It finally closed at 23,925 yuan/mt, an increase of 150 yuan/mt or 0.63%. Trading volume decreased to 45,221 lots, and open interest increased by 648 lots to 95,752 lots. Overnight, SHFE zinc recorded a bearish candlestick with no upper shadow, with various moving averages providing support. Overnight, driven by the overseas market, SHFE zinc fluctuated at highs. Coupled with positive domestic policy expectations, market sentiment improved. However, the current price has reached a resistance level, and further upward movement requires additional stimulus.