SHFE Zinc Maintains Fluctuating Trend, Focus on Post-Holiday Consumption Recovery [SMM Zinc Morning Comment]

SMM February 13 News:

Overnight, LME zinc opened at $2,826.5/mt, initially dipped to $2,821/mt, then climbed steadily after the opening, reaching a high of $2,873/mt during the night session. It subsequently hovered above the daily moving average and closed higher at $2,866/mt, up $38.5/mt or 1.36%. Trading volume increased to 10,900 lots, and open interest rose by 749 lots to 227,000 lots. Overnight, LME zinc formed a bullish candlestick, with the 10-day moving average providing support below. The US January non-seasonally adjusted CPI exceeded market expectations, but LME zinc inventory has been in continuous destocking since last year. Low inventory levels provided some support for zinc prices, and the center of LME zinc prices rebounded slightly.

Overnight, the most-traded SHFE zinc 2503 contract opened at 23,835 yuan/mt. After the opening, SHFE zinc slightly declined to a low of 23,740 yuan/mt, then rebounded from the low to move above the daily moving average. Near the close, SHFE zinc reached a high of 23,885 yuan/mt and finally closed higher at 23,870 yuan/mt, up 70 yuan/mt or 0.29%. Trading volume decreased to 46,984 lots, and open interest fell by 752 lots to 89,402 lots. Overnight, SHFE zinc formed a bullish candlestick, with the 40-day moving average acting as resistance above. On the fundamentals side, zinc ingot inventory continued to build up after the Chinese New Year, but downstream enterprises have largely resumed operations after the Lantern Festival. The market holds certain expectations for post-holiday consumption. SHFE zinc hovered at highs, with ongoing attention on the recovery of downstream consumption.