Overnight, LME zinc opened at $2,854.5/mt, dipping to $2,831/mt, then reaching a high of $2,886.5/mt, and closed at $2,846.5/mt, down $11.5/mt or 0.4%. Trading volume increased to 6,192 lots, and open interest decreased by 490 lots to 231,000 lots. Overnight, LME zinc recorded a small bearish candlestick, with the 60-day moving average forming resistance above and the 10-day moving average providing support below. Overnight, LME inventory decreased by 2,125 mt to 240,400 mt, a drop of 0.88%, reaching a four-month low. LME zinc maintained range-bound fluctuations overnight, with no significant macro news for guidance. Fundamentally, with overseas smelters increasing production, inventory continued to decline. Zinc prices are expected to continue fluctuating, awaiting more news for guidance.
Overnight, the most-traded SHFE zinc 2408 contract opened at 23,805 yuan/mt, reaching a high of 23,920 yuan/mt, then dropping to around 23,575 yuan/mt, and eventually closed at 23,585 yuan/mt, down 185 yuan/mt or 0.78%. Trading volume decreased to 92,590 lots, and open interest increased by 1,470 lots to 93,510 lots. Overnight, SHFE zinc recorded four consecutive bearish candlesticks, with the KDJ indicator narrowing. Weak demand played out, with SMM zinc inventory in seven major regions accumulating by 3,500 mt to 193,800 mt. As social inventory increased again, SHFE zinc prices ran weak.
