LME inventory increases, ending LME zinc's five-day winning streak [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,860/mt. In the early session, LME zinc oscillated along the daily average line. During European trading hours, it reached a high of $2,880/mt. As the night session approached, bears launched a high-level attack on LME zinc, causing it to decline continuously. The price center moved down to $2,840/mt by the end of the session, closing at $2,840.5/mt, down $19.5/mt or 0.68%. Trading volume decreased to 10,673 lots, while open interest increased by 327 lots to 188,000 lots. Overnight, LME zinc stopped rising and started to fall, with the KDJ opening narrowing. Overnight, LME zinc inventory increased, coupled with bears entering the market at high levels, causing the price center of LME zinc to decline slightly.

Overnight, the most-traded SHFE zinc 2509 contract opened lower with a gap at 22,850 yuan/mt. In the early session, SHFE zinc traded below the daily average line, with the price center oscillating around 22,810 yuan/mt. It attempted to break above but failed, closing at 22,810 yuan/mt, down 120 yuan/mt or 0.52%. Trading volume decreased to 8,423 lots, while open interest decreased by 1,883 lots to 37,024 lots. Overnight, SHFE zinc recorded a small bearish candlestick, with the 5-day moving average acting as resistance. Overnight, the ferrous metals market was weak, while alumina showed a stronger trend. Optimism in other metal markets faded somewhat. Meanwhile, social inventory of zinc and weekly inventory at smelters both increased, causing the price center of zinc to decline. Attention should be paid to the Sino-US trade negotiations next week.

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