Spot Consumption Remains Weak; SHFE Zinc Fluctuates in Trading [SMM Zinc Morning Comment]

SMM February 14 News:

Overnight, LME zinc opened at $2,866.5/mt. At the beginning of the session, LME zinc fluctuated around the daily moving average, reaching a high of $2,872/mt. During the midday session, it began to fluctuate downward, hitting a low of $2,833/mt by the end of the session, and finally closed down at $2,837.5/mt, a decrease of $28.5/mt or 0.99%. Trading volume decreased to 8,888 lots, and open interest fell by 1,641 lots to 225,000 lots. Overnight, LME zinc recorded a bearish candlestick, with support provided by the 10-day moving average below. The announcement by Trump of tariffs on US imports heightened concerns over global trade, and bearish macro sentiment pressured zinc prices, causing LME zinc to pull back slightly from highs.

Overnight, the most-traded SHFE zinc 2503 contract opened at 23,745 yuan/mt. After the opening, SHFE zinc fluctuated around the daily moving average, hitting a low of 23,670 yuan/mt during the session. It then rebounded from the low to reach a high of 23,850 yuan/mt, before pulling back from the high and finally closed down at 23,737.5 yuan/mt, a decrease of 40 yuan/mt or 0.17%. Trading volume decreased to 53,235 lots, while open interest increased by 175 lots to 84,880 lots. Overnight, SHFE zinc recorded a bearish candlestick, with resistance formed by the 40-day moving average above. Although the inventory buildup of zinc ingots this week was limited and low inventory still provided support for zinc prices, and downstream enterprises gradually resumed production after the Lantern Festival, short-term spot consumption of zinc ingots showed no significant improvement. As a result, SHFE zinc's upward momentum was limited, maintaining a fluctuating trend.