SMM, August 20: Overnight, the LME lead 3M contract drifted lower throughout the day on August 19, opening near $1,888/mt. It moved sideways in a narrow range of $1,880-1,890/mt in early trading, then gradually declined, hitting an intraday low of $1,871.0/mt. It rebounded somewhat towards the close, ultimately settling at $1,886.0/mt, down $2.0/mt or 0.11% from the previous trading day. The contract traded in a range of $1,871.0-1,891.5/mt during the day, with a swing of $20.5/mt, on a trading volume of 6,780 lots. Overnight, the SHFE lead 2610 contract in the night session initially dipped before rebounding. After opening, it quickly fell to 15,870 yuan/mt, then consolidated and recovered, reaching an intraday high of 15,975 yuan/mt, ultimately trading near 15,970 yuan/mt, up 30 yuan/mt or 0.19% from the previous trading day's settlement price. The night session saw a trading volume of 23,831 lots, with open interest at 81,480 lots, an increase of 1,506 lots from the previous trading day.

SMM Morning Meeting Minutes: Overnight, LME copper opened at $14,045/mt, hit a high of $14,106.5/mt early in the session, then its price center descended and fell to $13,958/mt, before finally closing at $13,961.5/mt, down 1.2%. Trading volume reached 21,000 lots, and open interest stood at 270,000 lots, a decrease of 276 lots from the previous session, indicating long liquidation. Overnight, the most-traded SHFE copper 2609 contract opened at 107,630 yuan/mt, immediately hitting a high of 107,770 yuan/mt, then the price center plunged straight down to hit a bottom of 106,820 yuan/mt, finally closing at 107,020 yuan/mt, down 0.89%. Trading volume reached 42,000 lots, and open interest stood at 186,000 lots, a decrease of 6,652 lots from the previous session, indicating long liquidation.

SMM, August 19: Overnight LME copper opened at $14,045/mt, hit a high of $14,106.5/mt at the opening, then the price center moved lower and dipped to $13,958/mt, eventually closing at $13,961.5/mt, recording a decline of 1.2%. Trading volume was 21,000 lots, and open interest was 270,000 lots, down 276 lots from the previous trading day, reflecting long liquidation. Overnight, the most-traded SHFE copper 2609 contract opened at 107,630 yuan/mt, touched a high of 107,770 yuan/mt at the opening, then the price center moved sharply lower and hit bottom at 106,820 yuan/mt, eventually closing at 107,020 yuan/mt, posting a decline of 0.89%. Trading volume was 42,000 lots, and open interest was 186,000 lots, down 6,652 lots from the previous trading day, also reflecting long liquidation. On the macro front, geopolitical risks in the Middle East remain uncertain. Trump stated that he had no intention to restart negotiations with Iran, and Iran’s parliament speaker also said that the Strait of Hormuz would remain closed, as the risk of regional conflict has not fully eased. In addition, LME inventory increased for two consecutive days, gradually alleviating market concerns over tight supply in non-U.S. regions for the time being. This expectation exerted some bearish pressure on copper prices. From the fundamental perspective, on the supply side, with some arrivals of domestic and imported cargoes, the tight supply situation marginally improved. On the demand side, affected by the intraday pullback in copper prices, downstream enterprises’ willingness for just-in-time procurement was released to some extent, driving some spot transactions. Overall, copper prices are expected to consolidate on a subdued note within a narrow range today.

[SMM Zinc Morning Meeting Summary: Macro Sentiment Fluctuated, LME Zinc Recorded a Doji]: Overnight LME zinc opened at $3,745/mt, briefly rose in early trading to a high of $3,758.5/mt, then declined all the way to a low of $3,697.5/mt during European trading hours, before losses narrowed in late trading and it finally closed flat at $3,745/mt. Trading volume increased to 11,288 lots, and open interest rose by 4,236 lots to 254,000 lots.

[SMM Zinc Morning Meeting Minutes: LME Inventory Continues Destocking, LME Zinc Center Moves Higher]: Overnight, LME zinc opened at $3,727.5/mt. It drifted lower in early trading, dipping to a low of $3,726/mt, then stopped falling and rebounded, touching a high of $3,786/mt during the night session. Gains narrowed in late trading, and it eventually closed higher at $3,745/mt, up $10.5/mt, or 0.28%. Trading volume fell to 10,364 lots, and open interest increased by 145 lots to 250,000 lots.

[SMM Zinc Morning Brief: Low LME inventory keeps LME zinc consolidating at highs]: Overnight LME zinc opened at $3,737/mt, drifted lower at the start to a low of $3,708.5/mt, then stopped falling and rebounded to a high of $3,752/mt. Gains narrowed in late trading, and it finally closed at $3,734.5/mt, down $1/mt, or 0.03%. Trading volume decreased to 10,410 lots, and open interest rose by 2,790 lots to 250,000 lots.

[SMM Zinc Morning Comment: Fundamental Pattern Unchanged, SHFE Zinc Consolidates at Highs] Overnight, the most-traded SHFE zinc 2609 contract opened at 25,700 yuan/mt, initially shot up to 25,740 yuan/mt, and then consolidated and pulled back, touching a low of 25,560 yuan/mt, before finally closing at 25,590 yuan/mt, down 75 yuan/mt or 0.29%. Trading volume dropped to 35,618 lots, and open interest decreased by 949 lots to 114,000 lots.

[SMM Zinc Morning Comment: Exports Drive Destocking, SHFE Zinc Center Moves Up] Overnight, the most-traded SHFE zinc 2609 contract opened at 25,555 yuan/mt. At the beginning of the session, SHFE zinc briefly dipped to a low of 25,460 yuan/mt. Subsequently, bears reduced positions, and SHFE zinc rose all the way to touch a high of 25,700 yuan/mt near the end of the session. It finally closed up at 25,650 yuan/mt, up 35 yuan/mt, a decline of 0.14%. Trading volume decreased to 49,734 lots, and open interest decreased by 1,326 lots to 119,000 lots.

[SMM Zinc Morning Meeting Minutes: LME Inventory Still Low, LME Zinc Consolidates at Highs]: Overnight, LME zinc opened at $3,711/mt, drifted lower in early trading, and hit a low of $3,687/mt during European trading hours. Then, as bears reduced their positions, LME zinc drifted higher, reaching a night session high of $3,745.5/mt, and finally closed up at $3,735.5/mt, gaining $37.5/mt or 1.01%. Trading volume dropped to 11,048 lots, and open interest decreased by 6,595 lots to 247,000 lots.

[SMM Zinc Morning Meeting Summary: Non-farm Payrolls Data Missed Expectations, LME Zinc Center Shifted Lower]: Last Friday, LME zinc opened at $3,764/mt. At the beginning of the session, LME zinc briefly rose to hit a high of $3,798/mt, then bears added positions, and LME zinc drifted lower all the way, dipping to a low of $3,697/mt near the close. It ended down at $3,698/mt, falling $71.5/mt, a decline of 1.9%. Trading volume fell to 14,673 lots, and open interest increased by 5,089 lots to 254,000 lots.