Social Inventory Gradually Rises, Zinc Price Center Slightly Declines [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,324/mt, initially touching a high of $3,327.5/mt before its price center quickly fell to $3,271.5/mt. After entering European trading hours, the price gradually fluctuated and rebounded, moving above the daily average line by the end of the session, ultimately closing down at $3,298.5/mt, a decrease of $7/mt, or a 0.21% drop. Trading volume decreased to 80,368 lots, and open interest fell by 3,617 lots to 229,000 lots. Overnight, LME zinc formed a bearish candlestick, with resistance from the 5- and 10-day daily averages above and support from the 40- and 60-day daily averages below. Influenced by the decline in precious metals, the price centers of base metals generally moved lower; however, the gradual decrease in overseas zinc inventory provided some support to zinc prices, and LME zinc maintained a fluctuating trend.

Overnight, the most-traded SHFE zinc 2603 contract opened at 24,350 yuan/mt, initially dipping to 24,320 yuan/mt. Subsequently, bears reduced positions and exited the market, and the price gradually fluctuated and rebounded, rising above the daily average line and touching a high of 24,615 yuan/mt. It maintained a high fluctuation near the end of the session, ultimately closing up at 24,600 yuan/mt, an increase of 205 yuan/mt from the opening, or a 0.84% gain. Trading volume decreased to 70,510 lots, and open interest fell by 852 lots to 69,679 lots. Overnight, SHFE zinc formed a bullish candlestick, with resistance from the 5- and 20-day daily averages above and support from the 40- and 60-day daily averages below. Domestic social inventory continued to build up, consumption in the spot market was moderate, and macro sentiment waned, leading to a slight decline in the price center of SHFE zinc.

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, and are for reference only, not constituting decision-making advice.