Social inventory destocked again, providing bottom support for zinc prices [SMM Morning Comment]

Overnight, LME zinc opened at $2,598/mt. At the beginning of the session, after a brief consolidation, longs increased their positions, pushing the price to a high of $2,617/mt. Subsequently, bears intervened at higher levels, causing LME zinc to fluctuate downward and hit a low of $2,558/mt during European trading hours. Entering the night session, LME zinc returned to consolidate around the daily average line, eventually closing up at $2,595/mt, an increase of $17.5/mt or 0.69%. Trading volume decreased to 11,596 lots, while open interest decreased by 6,570 lots to 203,000 lots. Overnight, LME zinc recorded a four-day losing streak, with various moving averages forming resistance above. The US dollar rebounded slightly overnight, and with the Easter holiday starting today, funds mainly exited the market, leading LME zinc to maintain a fluctuating trend.

Overnight, the most-traded SHFE zinc 2506 contract opened at 21,950 yuan/mt. At the beginning of the session, longs increased their positions, quickly pushing the price to a high of 22,085 yuan/mt. However, bears increased their positions to suppress the price, causing SHFE zinc to fluctuate downward and hit a low of 21,870 yuan/mt before rebounding, recording a "V" reversal. It eventually closed up at 22,015 yuan/mt, an increase of 50 yuan/mt or 0.23%. Trading volume decreased to 84,317 lots, while open interest increased by 3,574 lots to 131,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the MACD bearish candlestick narrowing. Stimulated by the low zinc price, downstream companies increased their buying the dip, leading to a destocking of nearly 6,000 mt in social inventory, providing bottom support for the zinc price.