Monday Zinc Ingot Inventory Continued to Rise, SHFE Zinc Maintained Fluctuating Trend [SMM Zinc Morning Comment]

SMM, April 21:

During the overnight session, LME zinc opened at $3,415/mt, dipped to $3,396/mt early in the session, then quickly rallied to touch a high of $3,460/mt before fluctuating and pulling back again. Toward the end of the session, LME zinc fell below the daily moving average, ultimately closing down at $3,414/mt, down $15/mt or 0.44%. Trading volume decreased to 10,132 lots, while open interest increased by 4,814 lots to 226,000 lots. Overnight, LME zinc posted a small bearish candlestick, with the 5-day moving average providing support below. Prospects for US-Iran negotiations remained uncertain, the Strait of Hormuz was closed again, and market concerns resurfaced. LME zinc struggled to rise, with its center pulling back slightly MoM.

During the overnight session, the most-traded SHFE zinc 2606 contract opened at 24,150 yuan/mt. After the open, SHFE zinc fluctuated upward, touching a high of 24,270 yuan/mt early in the session, then continuously pulled back from highs, dipping to 24,135 yuan/mt near the end of the session, and ultimately closed down at 24,180 yuan/mt, down 25 yuan/mt or 0.1%. Trading volume decreased to 28,729 lots, while open interest increased by 2,672 lots to 83,164 lots. Overnight, SHFE zinc posted a bullish candlestick, with the upper Bollinger Bands rail forming resistance. On the macro front, market sentiment deteriorated. On the fundamentals side, SMM zinc ingot inventory recorded another increase on Monday, and China's consumption had yet to show significant momentum. SHFE zinc maintained a fluctuating trend during the night session. Attention should be paid to subsequent zinc ingot export developments.

Data source disclaimer: Data other than publicly available information is derived from publicly available information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.