Insufficient fundamental support, SHFE zinc maintains fluctuating trend [SMM Zinc Morning Comment]

Published: Apr 23, 2025 08:46

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SMM Zinc Morning Comment: Insufficient Fundamental Support, SHFE Zinc Maintains Fluctuating Trend. Overnight, LME zinc opened at $2,605/mt, quickly surged to a high of $2,629/mt after opening, then fell back from highs and fluctuated downward, hitting a low of $2,580/mt during the midday session. After another failed attempt to rally, it returned to the vicinity of the daily average line, finally closing up at $2,601/mt, an increase of $6/mt, or 0.23%.

SMM April 23 News: Overnight, LME zinc opened at $2,605/mt, quickly surged to a high of $2,629/mt after opening, then fell back from highs and fluctuated downward, touching a low of $2,580/mt during the afternoon session. After failing to rise again, it returned to near the daily average line, finally closing up at $2,601/mt, an increase of $6/mt, or 0.23%. Trading volume increased to 12,577 lots, while open interest decreased by 2,179 lots to 201,000 lots. LME zinc inventory dropped by 3,125 mt to 192,225 mt, a decrease of 1.6%. Overnight, LME zinc recorded a bearish candlestick, with the 5-day moving average forming resistance above. The continued weakness of the US dollar boosted non-ferrous metals. After the holiday, the center of LME zinc moved upward, but market concerns about downstream demand persist, limiting the upside potential for LME zinc.

Overnight, the most-traded SHFE zinc 2506 contract opened at 22,325 yuan/mt, touched a high of 22,385 yuan/mt after opening, then fluctuated downward around the daily average line, touching a low of 22,210 yuan/mt before rebounding to near the daily average line, finally closing flat at 22,285 yuan/mt. Trading volume decreased to 83,014 lots, while open interest increased by 4,020 lots to 134,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the 20-day moving average providing support below. On the supply side, smelters continue to increase production, while downstream consumption is expected to enter the off-season in May. The fundamentals provide insufficient support for zinc prices, and SHFE zinc maintains a fluctuating trend.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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