Social Inventory Destocking Remains Sluggish, SHFE Zinc Fluctuates Downward [SMM Zinc Morning Comment]

SMM March 11 News:

Overnight, LME zinc opened at $2,882/mt, initially reaching a high of $2,893.5/mt before fluctuating downward along the daily average line, hitting a low of $2,841.5/mt near the session's end, and finally closing down at $2,844.5/mt, a decrease of $37.5/mt or 1.3%. Trading volume fell to 8,622 lots, and open interest decreased by 2,390 lots to 217,000 lots. Overnight, LME zinc formed a bearish candlestick, with resistance from the 5-day moving average above. LME zinc inventory decreased by 75 mt to 160,100 mt, down 0.05%. The market continues to focus on the impact of tariffs on future demand, keeping LME zinc under pressure and trending lower. Further macroeconomic guidance is awaited.

Overnight, the most-traded SHFE zinc 2504 contract opened at 23,800 yuan/mt, initially reaching a high of 23,830 yuan/mt. After briefly fluctuating along the daily average line, it moved downward to a low of 23,720 yuan/mt, then slowly rebounded from the low, returning above the daily average line near the session's end, and finally closed down at 23,785 yuan/mt, a decrease of 50 yuan/mt or 0.21%. Trading volume fell to 39,759 lots, and open interest decreased by 611 lots to 81,935 lots. Overnight, SHFE zinc formed a bearish candlestick, with support from the 20-day moving average below. On Monday, SMM zinc inventory increased slightly by 1,800 mt WoW to 135,800 mt. The destocking trend in social inventory was sluggish, providing insufficient fundamental support for zinc prices, and SHFE zinc continued to fluctuate downward.