Domestic zinc inventory increases, SHFE zinc forms a "V"-shaped trend [SMM Zinc Futures Brief Comment]

SMM, June 23:

       The most-traded SHFE zinc 2507 contract opened at RMB 21,750/mt. In early trading, SHFE zinc immediately touched a high of RMB 21,800/mt. Subsequently, as bears increased their positions, SHFE zinc fluctuated downward below the daily moving average, dipping to a low of RMB 21,635/mt. Then, as bulls increased their positions, SHFE zinc rapidly rose above the daily moving average. In the tail end of trading, amid a tug-of-war between longs and shorts, the price center of SHFE zinc fluctuated rangebound around RMB 21,760/mt. It eventually closed up at RMB 21,780/mt, up RMB 105/mt or 0.48%. Trading volume increased to 111,000 lots, and open interest rose by 5,745 lots to 111,000 lots. SHFE zinc recorded a long lower shadow bullish candlestick, with the 20/60-day moving averages above exerting pressure and the lower Bollinger Band below providing support. According to SMM data, as of today (June 23), SMM's zinc inventory across seven locations stood at 77,800 mt, with a decrease in domestic inventory. Currently, downstream consumption is gradually weakening. However, due to reduced arrivals in some regions over the weekend, supply-side support for prices has strengthened. Today, SHFE zinc formed a "V"-shaped trend. Under the current fundamental conditions, it is expected that SHFE zinc will continue to fluctuate mainly in the short term.

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