Social inventory of zinc ingots continues to accumulate, while SHFE zinc maintains fluctuating trend [SMM Zinc Morning Comment]

SMM reported on July 4:

Overnight, LME zinc opened at $2,753/mt. After opening, LME zinc fluctuated along the daily average line, reaching a high of $2,759.5/mt during the session. Near the end of the session, LME zinc fell below the daily average line, touching a low of $2,734/mt, and finally closed down at $27,338/mt, a decrease of $15/mt or 0.54%. Trading volume decreased to 6,367 lots, and open interest decreased by 2,486 lots to 207,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 10-day moving average providing support below. The US non-farm payrolls for June increased by 147,000, exceeding market expectations. The strong US employment data cooled market expectations for interest rate cuts, causing the US dollar index to rise and LME zinc to lack upward momentum. It is expected that LME zinc will maintain a fluctuating trend today.

Overnight, the most-traded SHFE zinc 2508 contract opened at 22,295 yuan/mt. In the early session, SHFE zinc touched a low of 22,260 yuan/mt, then rapidly rose, reaching a high of 22,365 yuan/mt before fluctuating above the daily average line. It finally closed up at 22,330 yuan/mt, an increase of 5 yuan/mt or 0.02%. Trading volume decreased to 47,375 lots, and open interest decreased by 294 lots to 128,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the 5-day moving average providing support below. Downstream orders were weak during the off-season, but zinc ingot supply remained strong. On Thursday, SMM zinc ingot inventory increased by 1,800 mt MoM to 82,400 mt. Domestic zinc ingot inventory buildup continued, with a strong supply and weak demand in the fundamentals. It is expected that SHFE zinc will maintain a fluctuating trend today.