Social inventory of zinc ingots in China continues to increase, while SHFE zinc maintains fluctuating trend [SMM zinc morning comment]

SMM News on August 15:

Overnight, LME zinc opened at $2,818/mt. After opening, LME zinc fluctuated along the daily average line. During the session, LME zinc dipped to $2,810.5/mt, then fluctuated upward all the way. Near the end of the session, LME zinc hit a high of $2,851/mt, and finally closed up at $2,842.5/mt, up $31/mt. Trading volume increased to 7,717 lots, while open interest decreased by 588 lots to 194,000 lots. Overnight, LME zinc recorded a bullish candlestick, with the 20-day moving average providing support below. US PPI data for July hit the largest increase in three years, and the US Fed's hawkish remarks resurfaced. The US dollar index rebounded from a low level, and investors remained cautious. However, LME zinc inventory continued to decline, and the low inventory level provided some support for zinc prices. LME zinc first fell and then rose, with the overall center basically stable.

Overnight, the most-traded SHFE zinc 2510 contract opened at 22,500 yuan/mt. In the early session, SHFE zinc dipped to 22,500 yuan/mt. After opening, SHFE zinc fluctuated considerably around the daily average line, hitting a high of 22,600 yuan/mt during the night session, and then pulling back again to near the daily average line. It finally closed up at 22,570 yuan/mt, up 75 yuan/mt or 0.33%. Trading volume decreased to 30,792 lots, while open interest increased by 4,772 lots to 87,974 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the 5-day moving average forming resistance above. On Thursday, domestic zinc ingot inventory increased by 10,000 mt MoM to 129,000 mt, and the inventory growth trend continued. However, supported by the rebound in LME zinc prices, SHFE zinc basically maintained a fluctuating trend during the night session.