SMM June 18 News:
Overnight, LME zinc opened at $3,560/mt and fluctuated upward throughout the session. In early trading, LME zinc touched a low of $3,555.5/mt, then hit a high of $3,618/mt during the session, and subsequently hovered at elevated levels. It finally closed up at $3,611.5/mt, up $50/mt or 1.4%. Trading volume increased to 11,957 lots, while open interest decreased by 2,364 lots to 248,000 lots. Overnight, LME zinc formed a bullish candlestick, with support from the lower Bollinger Band. On the fundamentals side, LME zinc ingot inventory destocked slightly. Additionally, supply-side disruptions outside China persisted, prompting bears to trim positions. LME zinc rebounded from lows, with its price center moving higher.
Overnight, the most-traded SHFE zinc 2608 contract opened at 24,865 yuan/mt. During the night session, SHFE zinc opened higher with a gap and then fluctuated throughout. In early trading, SHFE zinc hit a high of 24,970 yuan/mt, and near the close it dipped to a low of 24,850 yuan/mt, finally closing up at 24,890 yuan/mt, up 150 yuan/mt or 0.61%. Trading volume decreased to 33,052 lots, while open interest increased by 1,428 lots to 88,145 lots. Overnight, SHFE zinc formed a bullish candlestick, supported by the 40-day moving average below. Boosted by the LME market performance, SHFE zinc opened higher in the night session. However, considering the persistent drag from off-season consumption on fundamentals, the near-term upside for SHFE zinc is limited, and it is expected to maintain a fluctuating trend.
Data source statement: Apart from publicly available information, all other data are processed by SMM based on public information, market communication, and SMM's internal database models, and are for reference only. They do not constitute any decision-making advice.
