Last Friday, LME zinc opened at $3,116/mt, then fluctuated rangebound around the daily average line. It touched a low of $3,115/mt during the session. As bears reduced positions, LME zinc fluctuated upward above the daily average line, hitting a high of $3,142/mt, before pulling back slightly below the daily average line toward the close. It finally settled at $3,127/mt, up $1/mt or 0.03%. Trading volume increased to 67,421 lots, while open interest fell by 1,011 lots to 230,000 lots. LME zinc formed a bullish candlestick last Friday, supported by the 5-day and 60-day daily average lines below. Ongoing regional geopolitical tensions continue to support short-term safe-haven sentiment, which may underpin zinc prices. However, overseas inventories are gradually rebounding from low levels, and LME zinc is expected to maintain a fluctuating trend.
Last Wednesday, the most-traded SHFE zinc 2602 contract opened at 23,360 yuan/mt. After opening, SHFE zinc rose slightly to a high of 23,370 yuan/mt, then fell rapidly below the daily average line as bulls reduced positions. Toward the close, it recovered part of the losses with a slight rise as bears cut positions, finally settling at 23,275 yuan/mt, down 105 yuan/mt or 0.45%. Trading volume increased to 155,000 lots, while open interest decreased by 6,891 lots to 86,579 lots. SHFE zinc formed a bearish candlestick last Wednesday, supported by the 40-day and 60-day daily average lines below. Fundamentally, the decline in domestic mine TC has temporarily paused, while refined zinc production is expected to increase slightly within the month. Market participants are monitoring post-holiday consumption recovery among end-users. SHFE zinc is projected to maintain a fluctuating trend in the short term.
Data Source Statement: Except for publicly available information, other data are derived by SMM based on public information, market communication, and SMM’s internal database model. They are for reference only and do not constitute decision-making advice.
