SMM Morning Comment For Zinc Market (Feb 19)

SHANGHAI, Feb 19 (SMM) –LME zinc moved upwards after opening at $2358/mt last Friday, reaching $2390/mt before closing at $2388/mt, up $23/mt or 0.97%. Trading volume rose to 9023 lots, and open interest rose 380 lots to 246,000 lots. LME zinc inventory increased by 5000 mt to 264825 mt. The SHFE zinc market was closed during the Spring Festival holiday. The market is optimistic about domestic economic development and the macro sentiment is bullish. However, downstream consumption is almost stagnant during the Spring Festival. The scale of smelter production reduction is small, stocks are increasing, and supply is relatively loose. Zinc prices may hover sideways, and we will continue to pay attention to changes in domestic inventories after the Spring Festival and the production resumption of downstream companies.