Shorts leave the market, SHFE zinc slightly recovers intraday losses [SMM zinc morning comment]

Overnight, LME zinc opened at $2777/mt, hitting a low and high of $2707/mt and $2781/mt respectively, and closed at $2758.5/mt, down $16.5/mt or 0.59%. Trading volume decreased to 12853 lots, and open interest decreased 3463 lots to 250,000 lots. LME zinc inventories decreased by 225 mt to 258250 mt, a decrease of 0.09%.

The most interest-traded SHFE 2406 zinc contract opened at 22280 yuan/mt overnight and fell to 22245 yuan/mt before rallying to a peak of 22565 yuan/mt. It eventually settled at 22485 yuan/mt, up 15 yuan/mt or 0.07%. Trading volume decreased to 113,000 lots, and open interest fell by 1206 lots to 122,000 lots. The U.S. real estate-related data were lower than expected, which emotionally dampened the confidence of short sellers. As short sellers left the market, SHFE zinc slightly clawed back the day's decline.