China's zinc inventory edged down, SHFE zinc recorded a small bearish candlestick [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,591.5/mt and immediately dipped to a low of $3,591.5/mt. During the European trading session, bears reduced positions, pushing the price up to a high of $3,627.5/mt, before the price pulled back. In the night session, prices continued to consolidate at highs, eventually closing up at $3,615/mt, up $27.5/mt, or 0.77%. Trading volume fell to 8,356 lots, and open interest decreased by 1,942 lots to 249,000 lots. Overnight, LME zinc formed a bullish candlestick with no lower shadow, with various moving averages below providing support. The pause in mutual attacks between the US and Iran eased some inflation concerns to a certain extent. LME inventory continued to decline, the ex-China B structure continued to widen, and LME zinc rose.

Overnight, the most-traded SHFE zinc 2609 contract opened at 24,890 yuan/mt. Early in the session, SHFE zinc shot up to a high of 24,935 yuan/mt, then bears added positions, and the price pulled back to a low of 24,790 yuan/mt. Subsequently, bulls added positions, and the price recovered and consolidated, rebounding to near the daily moving average. It eventually closed down at 24,865 yuan/mt, down 20 yuan/mt, or 0.08%. Trading volume decreased to 37,107 lots, and open interest increased by 1,847 lots to 113,000 lots. Overnight, SHFE zinc recorded a small bearish candlestick, with the 10-day and 60-day moving averages below providing support. Domestic inventory edged down but remained at high levels overall, while persistently weak downstream consumption capped the upside of zinc prices. However, domestic TC hovered at low levels, and SHFE zinc continued to consolidate at highs.

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