Domestic Social Inventory Continued to Increase, SHFE Zinc Maintained a Fluctuating Trend [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,313/mt, dipped to $3,282/mt in early trading, then its center fluctuated upward to a high of $3,367.5/mt. After entering the European trading session, prices pulled back somewhat. During the night session, LME zinc gradually recouped losses and traded back near the daily average line, finally closing up at $3,326/mt, up $3/mt, a gain of 0.09%. Trading volume fell to 115,000 lots, and open interest decreased by 2,929 lots to 216,000 lots. Overnight, LME zinc posted a bullish candlestick; the upper Bollinger Band acted as resistance above, while the 60-day moving average provided support below. The US dollar index plunged after Trump claimed he believed the war against Iran had basically ended, lifting LME zinc’s center.

Overnight, the most-traded SHFE zinc 2604 contract opened higher with a gap at 24,505 yuan/mt and touched a high of 24,525 yuan/mt in early trading. It then fluctuated downward as bulls reduced positions, dipping to 24,375 yuan/mt. As bears also reduced positions, prices rebounded and fluctuated near the daily average line, finally closing up at 24,425 yuan/mt, up 5 yuan/mt, a gain of 0.02%. Trading volume fell to 47,061 lots, and open interest decreased by 3,653 lots to 770.28 million lots. Overnight, SHFE zinc posted a small bearish candlestick, with the lower Bollinger Band providing support. Last night, SHFE zinc rose driven by LME, but domestic social inventory continued to increase, and smelter production is expected to keep releasing. Domestic supply is ample, but consumption currently shows no highlights, and SHFE zinc maintained a fluctuating trend.

Data Source Statement: Other data besides public information are processed by SMM based on public information and market communication, relying on SMM’s internal database model, for reference only and not constituting decision-making advice.