SMM News on July 28:
On last Friday, LME zinc opened at $2,842/mt. During the morning session, LME zinc fluctuated around the daily average line, then continued to fluctuate upward throughout the afternoon session. During the night session, LME zinc reached a high of $2,856/mt before declining all the way. Near the end of the session, LME zinc hit a low of $2,816.5/mt, eventually closing down at $2,829/mt, a drop of $11.5/mt or 0.4%. Trading volume decreased to 8,275 lots, while open interest increased by 2,366 lots to 191,000 lots. On last Friday, LME zinc recorded a bearish candlestick, with the upper Bollinger Band forming resistance. As the US-China tariff and trade negotiations approached, the market remained cautious, with some bearish funds entering the market, causing LME zinc to fluctuate downward.
On last Friday, the most-traded SHFE zinc 2509 contract opened at 22,905 yuan/mt. In the early session, SHFE zinc reached a high of 22,960 yuan/mt before rapidly declining to a low of 22,670 yuan/mt. Subsequently, it maintained a fluctuating trend near the end of the session, eventually closing down at 22,715 yuan/mt, a drop of 170 yuan/mt or 0.74%. Trading volume increased to 93,396 lots, while open interest increased by 1,621 lots to 131,000 lots. On last Friday, SHFE zinc recorded a bearish candlestick, with the 5-day moving average forming resistance. The positive sentiment brought about by previous policies gradually dissipated, zinc ingot inventory continued to accumulate, and the fundamental situation of strong supply and weak demand persisted. Coupled with the drag from LME zinc's performance, SHFE zinc pulled back from its highs.
