China’s Zinc Ingot Inventories Continued to Decline on Thursday, and the Center of SHFE Zinc Edged Higher [SMM Zinc Morning Comment]

SMM News, March 27:

Overnight, LME zinc opened at $3,078/mt. After the opening, LME zinc fluctuated downward and hit a low of $3,044.5/mt. It then rebounded rapidly, touching an intraday high of $3,118.5/mt, before retreating continuously from highs and finally closing down at $3,073.5/mt, down $75/mt, or 0.24%. Trading volume increased to 11,961 lots, and open interest rose by 1,232 lots to 210,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 10-day moving average above forming resistance. As market expectations for a swift end to the Middle East war faded and the US dollar index continued to strengthen, zinc prices remained under pressure. LME zinc pulled back from highs during the session, while the overall center held steady at lower levels.

Overnight, the most-traded SHFE zinc 2605 contract opened at 23,100 yuan/mt. After the opening, SHFE zinc fluctuated higher and touched a high of 23,340 yuan/mt near the beginning of the session. It then fluctuated and slowly pulled back to around the daily average line, hitting a low of 23,070 yuan/mt, and finally closed up at 23,170 yuan/mt, up 100 yuan/mt, or 0.43%. Trading volume increased to 70,197 lots, and open interest rose by 661 lots to 104,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the 10-day moving average below providing support. On the macro front, geopolitical conflicts persisted, while on the fundamentals side, as downstream consumption gradually recovered and China zinc ingot inventory continued to decline, SHFE zinc edged higher in the night session, with its center moving slightly upward.

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