Zinc Market Shows Volatility Amid Policy Watchfulness

The zinc market experienced ongoing fluctuations, with prices influenced by recent policy developments. On the Shanghai Futures Exchange (SHFE), zinc prices formed a bearish candlestick, facing resistance at the Bollinger Bands' middle line. The current trend reflects a supply surplus paired with subdued demand, prompting traders to increase short positions. Intraday, LME zinc opened at $2,749 per metric ton, initially consolidating before climbing above the daily average due to long positions and short covering. It peaked at $2,782.5 but later declined, closing at $2,750, down $4 from the previous session. Trading volume decreased, but open interest rose slightly. The US ISM Non-Manufacturing PMI for July fell to 50.1, indicating continued economic weakness, which impacts zinc sentiment. The SHFE zinc 2509 contract opened at 22,360 yuan per ton, dropping throughout the session and ending at 22,300 yuan, a slight decline. Trading activity slowed, with open interest increasing. Overall, zinc prices remain sensitive to supply-demand dynamics and policy signals, warranting close market watch.