LME Zinc Mainly Fluctuates Rangebound [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,932.5/mt, initially fluctuating near the average daily line amid mixed long and short positions. During European trading hours, longs reduced positions, causing LME zinc to quickly dip to $2,905/mt. Subsequently, shorts took profits and exited, leading LME zinc to rebound and peak at $2,977/mt during the night session. However, lacking upward momentum, LME zinc fell back and finally closed lower at $2,917/mt, down $24/mt or 0.82%. Trading volume decreased to 10,890 lots, and open interest fell by 2,935 lots to 237,000 lots. Overnight, LME zinc stocks were down by 225 mt to 261,850 mt, a decrease of 0.09%. Despite the US ISM manufacturing data contracting for three consecutive months, concerns about oversupply due to high inventory levels still exist, and LME zinc is expected to fluctuate.

Overnight, the most-traded SHFE zinc contract opened at 24,590 yuan/mt, initially rising briefly to 24,600 yuan/mt. Subsequently, increased short positions dragged SHFE zinc down to a session low of 24,325 yuan/mt, finally closing lower at 24,360 yuan/mt, down 15 yuan/mt or 0.06%. Trading volume decreased to 79,523 lots, and open interest increased by 529 lots to 93,457 lots. According to an SMM survey, as of Monday (July 1), SMM zinc ingot stocks in seven regions totaled 197,900 mt, up 4,100 mt from June 24 and up 3,300 mt from June 27, with domestic stocks increasing. Fundamentals are bearish, with poor downstream consumption and continuous increases in domestic stocks. SHFE zinc is expected to fluctuate rangebound.