Domestic inventory accumulates, SHFE zinc in the doldrums [[SMM Zinc Futures Brief Comment]]

SMM, May 6:

The most-traded SHFE zinc 2506 contract opened at 22,390 yuan/mt. In early trading, SHFE zinc briefly rose to a high of 22,580 yuan/mt. Subsequently, bears increased their positions, causing SHFE zinc to dive and touch a low of 22,300 yuan/mt. Afterwards, SHFE zinc fluctuated considerably along the daily average line, eventually closing down at 22,355 yuan/mt, down 85 yuan/mt or 0.38%. Trading volume decreased to 115,000 lots, while open interest increased by 5,719 lots to 112,000 lots. SHFE zinc recorded a long upper shadow bearish candlestick. According to SMM's communication, as of Tuesday (May 6), the total zinc ingot inventory across seven locations tracked by SMM stood at 84,100 mt, a decrease of 1,800 mt from April 28 and an increase of 7,100 mt from April 30. Domestic inventory recorded an increase. Mine supply is expected to continue increasing in May, but end-use demand is not anticipated to be strong, keeping SHFE zinc in the doldrums.

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