SHFE Zinc Opened Higher With a Gap, Overall Center Moved Upward [SMM Zinc Morning Comment]

SMM March 13 News:

Overnight, LME zinc opened at $2,913.5/mt. At the beginning of the session, LME zinc fluctuated downward slightly, hitting a low of $2,898/mt, then quickly rebounded to a high of $2,975/mt. Subsequently, LME zinc pulled back from the high and fell below the daily average line. Near the end of the session, it rebounded slightly to near the daily average line, ultimately closing up at $2,933/mt, an increase of $13/mt or 0.45%. Trading volume increased to 21,305 lots, and open interest rose by 955 lots to 215,000 lots. Overnight, LME zinc recorded a bullish candlestick, with support provided by the 5-day moving average below. LME zinc inventory decreased by 450 mt to 161,375 mt, a decline of 0.28%. The US February non-seasonally adjusted CPI annual rate came in below market expectations, and the US dollar index remained at a low level. Additionally, Nyrstar announced yesterday that its Hobart zinc smelter will reduce production by approximately 25% starting in April 2025. With the expectation of reduced supply, LME zinc saw a significant intraday increase.

Overnight, the most-traded SHFE zinc 2505 contract opened at 24,080 yuan/mt, reaching a high of 24,120 yuan/mt at the beginning of the session. It then fluctuated downward, hitting a low of 23,935 yuan/mt, and ultimately closed up at 23,965 yuan/mt, an increase of 150 yuan/mt or 0.63%. Trading volume increased to 55,165 lots, and open interest rose by 7,579 lots to 89,708 lots. Overnight, SHFE zinc recorded a bearish candlestick, with resistance formed by the upper Bollinger Band. Boosted by the performance of the overseas market, SHFE zinc opened higher with a gap during the night session. However, recent domestic spot consumption has remained weak, and fundamental support for zinc prices has not improved, leading SHFE zinc to fluctuate downward after the opening.