SMM Zinc Ingot Inventory Slightly Declines, SHFE Zinc Maintains Fluctuating Trend [SMM Zinc Morning Comment]

SMM Oct. 31:

Overnight, LME zinc opened at $3,066.5/mt, touched a high of $3,074/mt in early trading, then fluctuated downward along the daily average line, hitting a low of $3,022/mt near the close before rebounding slightly to near the daily average line, and finally closed down at $3,044.5/mt, down $25.5/mt or 0.83%. Trading volume decreased to 10,419 lots, while open interest increased by 1,045 lots to 222,000 lots. Overnight, LME zinc formed a bearish candlestick, with the upper Bollinger Band acting as resistance. Hawkish remarks from US Fed officials boosted the US dollar, and the market adopted a cautious stance toward potential interest rate cuts by the Fed, leading to a slight pullback in LME zinc. However, low inventory provided support, limiting the overall decline.

Overnight, the most-traded SHFE zinc 2512 contract opened at 22,280 yuan/mt, touched a low of 22,240 yuan/mt in early trading, then fluctuated upward slowly, reaching a high of 22,390 yuan/mt near the close, and finally closed up at 22,390 yuan/mt, up 25 yuan/mt or 0.11%. Trading volume decreased to 45,774 lots, while open interest decreased by 1,108 lots to 119,000 lots. Overnight, SHFE zinc formed a bullish candlestick, with the 20-day moving average providing support. The zinc ingot export window remained open, SMM zinc ingot inventory dropped MoM on Thursday, and zinc concentrate TCs continued to pull back. During the night session, SHFE zinc maintained a fluctuating trend, but the overall price center shifted downward.

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