Social Inventory Declines Again, Providing Bottom Support for Zinc Prices [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,929/mt. At the start of the session, an increase in long positions pushed LME zinc to a high of $2,955/mt. Subsequently, short positions targeted LME zinc, causing its center to shift and fluctuate around the daily average. However, with another increase in short positions, LME zinc fell again, reaching a low of $2,901.5/mt during the night session. By the end of the session, the center returned to near the daily average, closing at $2,919/mt, down $85/mt, or 0.29%. Trading volume increased to 12,536 lots, and open interest rose by 978 lots to 223,000 lots. Overnight, LME zinc recorded a four-day winning streak, with the daily candlestick's center moving lower, supported by the 60-day moving average. The market saw a generally dovish stance from the US Fed, leading to a rise in the US dollar index and a pullback in non-ferrous metals, including LME zinc.

Overnight, the most-traded SHFE zinc contract opened at 23,785 yuan/mt. At the beginning of the session, a tug-of-war between longs and shorts caused SHFE zinc to fluctuate rangebound around the daily average, touching a low of 23,745 yuan/mt. Later, an increase in long positions lifted the center, reaching a high of 23,855 yuan/mt by the end of the session. It closed at 23,840 yuan/mt, up 80 yuan/mt, or 0.34%. Trading volume decreased to 66,741 lots, and open interest fell by 771 lots to 124,000 lots. Overnight, SHFE zinc recorded a three-day winning streak, but faced pressure from various moving averages. As zinc prices declined, downstream enterprises increased buying the dip, with SMM social inventory dropping by over 7,000 mt, providing some support to zinc prices.