【Social Inventory Declines, SHFE Zinc Records a Large Bearish Candle】
SMM March 31: The most-traded SHFE zinc 2505 contract opened at 23,605 yuan/mt. At the beginning of the session, shorts increased their positions, causing SHFE zinc to fluctuate downward below the daily average line, hitting a low of 23,335 yuan/mt. Subsequently, shorts reduced their positions, leading to a slight upward movement in SHFE zinc. The contract finally closed down at 23,455 yuan/mt, a decrease of 315 yuan/mt, or 1.33%. The trading volume increased to 216,000 lots, and the open interest rose by 5,475 lots to 117,000 lots. SHFE zinc recorded a large bearish candle, with various moving averages exerting pressure above. According to SMM data, as of Monday (March 31), domestic social inventory stood at 125,900 mt, a decline that provided some support to zinc prices. However, recent continuous increases in domestic TC and the expectation of supply-side increments suggest that zinc prices are likely to maintain a fluctuating trend in the short term.
