Domestic inventory continued to increase, SHFE zinc expected to maintain fluctuating trend [SMM zinc morning comment]

SMM September 9 News:

Overnight, LME zinc opened at $2,862.5/mt. In early trading, the center of LME zinc prices rose to a high of $2,889/mt. During European trading hours, bears increased positions, pushing LME zinc down to a low of $2,856/mt. In the night session, LME zinc recovered some losses and rose above the daily average line, finally closing up at $2,873/mt, gaining $15.5/mt (up 0.54%). Trading volume increased to 95,398 lots, while open interest rose by 1,742 lots to 201,000 lots. On September 8, LME zinc inventory decreased by 975 mt to 53,075 mt (down 1.80%). Overnight, LME zinc formed a bullish candlestick, supported by the 10/60-day moving averages. The US dollar index continued to decline amid last week's weak employment data, coupled with growing market expectations for an interest rate cut in September and continuous reductions in overseas inventories, lifting the center of LME zinc prices.

Overnight, the most-traded SHFE zinc 2510 contract opened at 22,245 yuan/mt. In early trading, SHFE zinc dipped to a low of 22,180 yuan/mt before bears reduced positions, pushing prices above the daily average line to a high of 22,260 yuan/mt. Prices maintained a fluctuating trend toward the session close, ending down at 22,245 yuan/mt, losing 25 yuan/mt (down 0.11%). Trading volume decreased to 36,944 lots, while open interest fell by 663 lots to 105,000 lots. Overnight, SHFE zinc formed a doji with a long lower shadow, supported by the lower Bollinger Band. According to SMM surveys, as of Monday (September 8), SMM's zinc ingot inventory across seven regions increased further to 152,100 mt. Downstream demand has yet to show clear seasonal strength, but low overseas inventories continue to support price floors, suggesting SHFE zinc will likely maintain a fluctuating trend in the short term.