SMM August 20 report:
Overnight, LME zinc opened at $2,770.5/mt. At the beginning of the session, LME zinc briefly declined to a low of $2,766/mt. Subsequently, LME zinc mainly fluctuated around the daily moving average. As bears reduced their positions, LME zinc fluctuated upward, reaching a high of $2,791.5/mt during the night session, and finally closed up at $2,786/mt, an increase of $16/mt or 0.58%. Trading volume decreased to 5,765 lots, while open interest fell by 1,495 lots to 191,000 lots. Overnight, LME zinc recorded a small bullish candlestick, with the 5- and 10-day moving averages exerting pressure from above. Currently, more funds are waiting for Powell's speech on Friday to confirm the September interest rate cut. The US dollar closed lower, leading to a slight rebound in nonferrous metals, and the center of LME zinc moved upward.
Overnight, the most-traded SHFE zinc 2510 contract opened at 22,300 yuan/mt. At the start of the session, SHFE zinc briefly rose to a high of 22,330 yuan/mt. However, due to insufficient upward momentum, the center pulled back to a low of 22,245 yuan/mt, and finally closed up at 22,300 yuan/mt, an increase of 35 yuan/mt or 0.16%. Trading volume decreased to 38,864 lots, while open interest fell by 571 lots to 110,000 lots. Overnight, SHFE zinc recorded a doji. Domestic consumption remains weak, but continuous destocking overseas has raised market concerns, making funds cautious. The center of SHFE zinc slightly moved upward, and it is expected that SHFE zinc will mainly consolidate today.
