Zinc Ingot Inventory Declined Slightly, SHFE Zinc Rose in Night Session [SMM Zinc Morning Comment]

SMM January 23:

Overnight, LME zinc opened at $3,185/mt. After opening, LME zinc fluctuated upward, hitting a low of $3,174.5/mt early in the session and reaching a high of $3,243.5/mt toward the end. It finally closed up at $3,233/mt, rising $58/mt, a gain of 1.83%. Trading volume decreased to 9,939 lots, and open interest fell by 649 lots to 229,000 lots. Overnight, LME zinc formed a bullish candlestick, supported by the 20-day moving average below. Although Trump abandoned tariff threats and panic sentiment from Greenland subsided, Nexa temporarily suspended production at the Atacocha San Gerardo open-pit mine due to community road blockades, causing some disruption in mine supply. LME zinc rose from low levels, with the overall price center shifting upward.

Overnight, the most-traded SHFE zinc 2603 contract opened at 24,350 yuan/mt. Early in the session, it touched a low of 24,340 yuan/mt, then fluctuated upward, reaching a high of 24,560 yuan/mt during the session. Subsequently, it dropped back slightly near the daily average line, finally closing up at 24,530 yuan/mt, rising 130 yuan/mt, a gain of 0.53%. Trading volume increased to 70,981 lots, and open interest rose by 890 lots to 119,000 lots. Overnight, SHFE zinc formed a bullish candlestick, with the KDJ gap widening. Domestic zinc ingot social inventory saw a brief decline, coupled with overseas supply disruptions, leading SHFE zinc to rise during the night session. However, considering the persistent weakness in domestic consumption, short-term upside room is expected to be limited.

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