Domestic zinc ingot inventory continues to accumulate, SHFE zinc maintains fluctuating trend [SMM Zinc Morning Comment]

SMM reported on August 12:

Overnight, LME zinc opened at $2,826.5/mt. After opening, LME zinc fluctuated upward, hitting a high of $2,846.5/mt. Then, in the afternoon session, LME zinc fell back from highs and continued to decline, reaching a low of $2,806.5/mt near the end of the session. It finally closed lower at $2,808/mt, down $26/mt or 0.92%. Trading volume increased to 8,514 lots, while open interest decreased by 977 lots to 193,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 5-day moving average providing support below. The market continued to await the US inflation report to gauge the prospects of an interest rate cut. The US dollar index rose from lows, putting some pressure on zinc prices. However, the strong support from low LME zinc inventory kept LME zinc fluctuating at highs.

Overnight, the most-traded SHFE zinc 2509 contract opened at 22,495 yuan/mt. In the early session, SHFE zinc reached a low of 22,450 yuan/mt, then slowly fluctuated upward, hitting a high of 22,555 yuan/mt. Near the end of the session, SHFE zinc dropped back slightly to near the daily average, closing lower at 22,505 yuan/mt, down 85 yuan/mt or 0.38%. Trading volume decreased to 35,657 lots, while open interest decreased by 4,003 lots to 89,383 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the middle Bollinger Band forming resistance. On Monday, SMM zinc inventory continued to increase to around 120,000 mt. The domestic zinc market remained in a supply-strong and demand-weak pattern. The center of SHFE zinc night session prices slipped slightly, with attention to be paid to subsequent macro guidance.