SHFE Zinc Center Moved Lower; Focus on Today's Inventory Performance [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,313/mt. In early trading, LME zinc maintained a fluctuating trend and touched a high of $3,352/mt. Entering the European trading session, LME zinc fell rapidly to a low of $3,296.5/mt. In the night session, LME zinc gradually recouped its losses and fluctuated upward to hover near the daily average line, ultimately closing down at $3,315.5/mt, down $26.5/mt, or 0.79%. Trading volume decreased to 91,642 lots, and open interest increased by 494 lots to 217,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the upper Bollinger Bands capping prices above and the lower Bollinger Bands providing support below. As investors remained alert to a further escalation of the conflict in the Middle East, the US dollar rose, and the US February CPI met expectations while inflation remained sticky, LME zinc fluctuated lower.

Overnight, the most-traded SHFE zinc 2604 contract opened lower with a gap at 24,245 yuan/mt. In early trading, SHFE zinc fluctuated and touched a low of 24,095 yuan/mt. Thereafter, as bears reduced open interest, SHFE zinc gradually rose above the daily average line, touching a high of 24,385 yuan/mt near the close, and ultimately closed down at 24,375 yuan/mt, down 10 yuan/mt, or 0.04%. Trading volume decreased to 54,485 lots, and open interest increased by 94 lots to 74,314 lots. Overnight, SHFE zinc recorded a small bullish candlestick, with the lower Bollinger Bands providing support below. At present, China social inventory remained generally high. Coupled with expectations that China zinc ingot supply in March will continue to increase, while demand performance was relatively average, attention should be paid to today’s inventory changes in China.

Data source statement: Except for public information, all other data is processed and derived by SMM based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute decision-making advice.