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

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.