Downstream Stocking Up on Raw Materials at Low Levels, SHFE Zinc Edges Up [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,826/mt. After the opening, LME zinc fluctuated around the daily moving average, briefly dipping to $2,818.5/mt before quickly rising to a high of $2,876/mt. It then fell back from highs to near the daily moving average, slightly rebounding towards the end of the session, and finally closed up at $2,860/mt, an increase of $37.5/mt or 1.33%. Trading volume decreased to 12,648 lots, while open interest increased by 366 lots to 217,000 lots. Overnight, LME zinc formed a bullish candlestick, with resistance from the 5-day moving average above. LME zinc inventory decreased by 3,625 mt to 216,900 mt, a drop of 1.64%. Market concerns over US tariff policies persisted, and the US dollar index fluctuated at highs, continuing to exert pressure on zinc prices. LME zinc operated at low levels.

Overnight, the most-traded SHFE zinc 2502 contract opened at 24,185 yuan/mt. At the beginning of the session, SHFE zinc reached a high of 24,235 yuan/mt before trending downward to a low of 24,040 yuan/mt. It then fluctuated around 24,100 yuan/mt and finally closed down at 24,100 yuan/mt, a decrease of 10 yuan/mt or 0.04%. Trading volume fell to 53,502 lots, while open interest increased by 74 lots to 101,000 lots. Overnight, SHFE zinc formed a bearish candlestick, with support from the lower Bollinger Band. Recently, downstream sectors have continued to stock up raw materials at lower prices, and SMM zinc ingot inventory continued to decline MoM, providing some support for zinc prices. The center of SHFE zinc prices moved slightly upward.