SMM Zinc Market Morning Comment (Jul 10)

Overnight, LME zinc opened at $2,959/mt, reaching a high of $2,964.5/mt before hitting a low of $2,921/mt, and closed at $2,940/mt, down $5/mt, a decrease of 0.17%. Trading volume increased to 7,886 lots, and open interest rose by 5,092 lots to 239,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 5-day moving average forming resistance. LME zinc inventory was reduced by 2,300 mt to 256,375 mt, a decrease of 0.89%. The US dollar index rebounded from a low level, putting pressure on LME zinc prices, which continued to decline. Attention should be paid to the upcoming US inflation data release.

Overnight, the most-traded SHFE 2408 zinc contract opened at 24,325 yuan/mt, reaching a high of 24,350 yuan/mt before hitting a low of 24,215 yuan/mt, and closed at 24,280 yuan/mt, down 130 yuan/mt, a decrease of 0.53%. Trading volume was reduced to 63,451 lots, and open interest decreased by 2,104 lots to 77,078 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the middle Bollinger Bands providing support. Affected by overseas futures and weak domestic downstream zinc demand, SHFE zinc lacked upward momentum and continued to fall.