Social inventory continues to increase, while SHFE zinc maintains a fluctuating trend [SMM Zinc Futures Brief Commentary]

SMM, June 5:

       The most-traded SHFE zinc 2507 contract opened at 22,365 yuan/mt. In the early session, bulls increased their positions, driving SHFE zinc prices up to a high of 22,450 yuan/mt. Subsequently, bears increased their positions, pushing SHFE zinc prices down below the daily average line to a low of 22,255 yuan/mt. Towards the end of the session, bears reduced their positions, allowing SHFE zinc to recoup some of its losses. It eventually closed at 22,340 yuan/mt, down 80 yuan/mt or 0.36%. Trading volume decreased to 147,000 lots, while open interest increased by 642 lots to 125,000 lots. According to SMM communications, as of today, domestic zinc ingot inventory stood at 79,300 mt, continuing to increase. Meanwhile, downstream consumption has begun to weaken recently. It is expected that SHFE zinc will remain in the doldrums in the short term.

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