Domestic Inventory Buildup Falls Short of Expectations, SHFE Zinc Center Shifts Upward [SMM Zinc Morning Comment]

 Overnight, the LME zinc contract opened at $3,280/mt. At the beginning of the session, bulls increased their positions, driving a rapid surge in LME zinc to a high of $3,355/mt. Subsequently, as bulls and bears intertwined, LME zinc fluctuated considerably. Upon entering the night session, LME zinc plunged to a low of $3,258.5/mt, after which its price center rebounded, ultimately closing up at $3,313.5/mt, an increase of $23.5/mt, or 0.71%. Trading volume rose to 19,677 lots, and open interest increased by 3,117 lots to 231,000 lots. Overnight, LME zinc recorded a long upper shadow bullish candlestick. Although unexpected declines in initial jobless claims weakened US interest rate cut expectations, geopolitical uncertainties persist, and funds continued to flow in, pushing the LME zinc price center higher.

Overnight, the most-traded SHFE zinc 2603 contract opened at 25,120 yuan/mt. At the start of the session, SHFE zinc quickly dipped to a low of 24,720 yuan/mt. Subsequently, bulls increased their positions, driving a rapid rise in SHFE zinc to a high of 25,155 yuan/mt, after which it fluctuated before ultimately closing up at 25,125 yuan/mt, an increase of 35 yuan/mt, or 0.14%. Trading volume decreased to 215,000 lots, while open interest increased by 4,538 lots to 148,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick. Overseas macro sentiment remains relatively positive, domestic inventory buildup fell short of expectations, funds continued to flow in with high crowding, supporting a further upward shift in the SHFE zinc price center.

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