SMM August 27 News:
Overnight, LME zinc opened at $2,811/mt. At the beginning of the session, LME zinc briefly fell below the daily average line but then recovered and rose to above the daily average, reaching a high of $2,818.5/mt. However, an increase in short positions caused the center of LME zinc to continuously decline below the daily average, hitting a low of $2,753/mt during the night. It finally closed down at $2,764/mt, a decrease of $43/mt or 1.53%. Trading volume increased to 84,153 lots, and open interest increased by 964 lots to 192,000 lots. On August 27, LME zinc inventory decreased by 5,500 mt to 60,025 mt, a drop of 8.39%. Overnight, LME zinc recorded a large bearish candlestick, with the 60-day moving average providing support below. Currently, the crisis over the independence of the US Fed is intensifying, and the US dollar index recorded a "V" reversal yesterday. Meanwhile, some international regions are still affected by tariff disruptions, causing the center of LME zinc to decline.
Overnight, the most-traded SHFE zinc 2510 contract opened lower with a gap at 22,210 yuan/mt. At the start of the session, SHFE zinc reached a high of 22,220 yuan/mt, but then, with an increase in short positions, it fell to a low of 22,085 yuan/mt. Subsequently, as short positions were reduced, SHFE zinc slightly rebounded near the daily average, fluctuating rangebound around 22,130 yuan/mt. It finally closed down at 22,120 yuan/mt, a decrease of 190 yuan/mt or 0.85%. Trading volume decreased to 77,880 lots, and open interest increased by 7,537 lots to 115,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the lower Bollinger Band providing support below. Influenced by the overseas market, SHFE zinc opened lower with a gap last night. Domestic supply is relatively ample, and overall market demand still exhibits off-season characteristics. However, the September-October peak season is approaching, and with overseas inventories continuously decreasing, SHFE zinc is expected to remain in the doldrums. Attention should be paid to the actual consumption situation going forward.
