SMM reported on July 8:
Overnight, LME zinc opened at $2,688/mt. Early in the session, LME zinc briefly dipped to a low of $2,675.5/mt. Subsequently, bears reduced their positions, and LME zinc fluctuated upward, reaching a high of $2,740/mt at the close. It ultimately closed up at $2,719/mt, gaining $36/mt or 1.34%. Trading volume increased to 11,750 lots, while open interest decreased by 2,843 lots to 200,000 lots. Overnight, LME zinc recorded a large bullish candlestick. The 5/10-day moving averages formed resistance. LME zinc inventory continued destocking, with low inventory supporting zinc prices. Expectations for US Fed interest rate cuts resurfaced, pushing the center of LME zinc higher.
Overnight, the most-traded SHFE zinc 2508 contract opened at 22,175 yuan/mt, hitting an intraday high immediately. It quickly dipped to a low of 22,020 yuan/mt. Subsequently, bears reduced their positions, and SHFE zinc fluctuated upward, ultimately closing up at 22,160 yuan/mt, gaining 110 yuan/mt or 0.5%. Trading volume decreased to 65,173 lots, while open interest decreased by 328 lots to 119,000 lots. Overnight, SHFE zinc recorded a long lower shadow bearish candlestick with no upper shadow. The middle Bollinger Band provided support. Macro sentiment was bullish, prompting some bears to take profits and exit the market. It is expected that SHFE zinc will consolidate with fluctuations today.
