SHFE Zinc Hovers at Highs, Watch for Subsequent Export Window [SMM Zinc Morning Comment]

SMM, April 22:

During the overnight session, LME zinc opened at $3,414/mt. After the open, LME zinc dipped slightly, touching a low of $3,387.5/mt before quickly rising, reaching an intraday high of $3,454.5/mt. LME zinc then pulled back from highs, ultimately closing up at $3,437/mt, up $23/mt or 0.67%. Trading volume rose to 11,244 lots, while open interest decreased by 1,178 lots to 225,000 lots. Overnight, LME zinc posted a bullish candlestick, with the upper Bollinger Band forming resistance. Although on the macro front the outlook for US-Iran negotiations remained unclear and the US dollar index rebounded somewhat, LME zinc ingot inventory continued to decline, hitting a one-month low. Bears reduced positions, driving LME zinc prices higher intraday, and the LME zinc price center shifted upward MoM.

During the overnight session, the most-traded SHFE zinc 2606 contract opened at 24,290 yuan/mt. At the start of the session, SHFE zinc touched a high of 24,300 yuan/mt before fluctuating downward throughout the session, reaching an intraday low of 24,105 yuan/mt. SHFE zinc then maintained a fluctuating trend, ultimately closing up at 24,180 yuan/mt, up 65 yuan/mt or 0.27%. Trading volume rose to 42,286 lots, while open interest increased by 3,028 lots to 87,324 lots. Overnight, SHFE zinc posted a bearish candlestick, with the 10-day moving average providing support below. Boosted by LME price movements, SHFE zinc opened higher with a gap during the night session. However, on the fundamentals side, the tight ore and loose ingot situation in China remained unresolved, and macro trends were still unclear, with SHFE zinc hovering at highs.

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