Most Consumers on Holiday, SHFE Zinc in the Doldrums [SMM Zinc Morning Comment]

SMM February 9:

Overnight, the LME zinc contract opened at $3,371/mt. At the beginning of the session, bulls reduced their positions, causing LME zinc to fluctuate downward, hitting a low of $3,326.5/mt during the night session. Subsequently, with a mix of long and short positions, the price center of LME zinc shifted upward, reaching a high of $3,387/mt toward the end of the session. It finally closed down at $3,382/mt, falling by $1/mt, a decline of 0.03%. Trading volume dropped to 7,361 lots, and open interest decreased by 711 lots to 229,000 lots. Overnight, LME zinc recorded a small bullish candlestick. As the market awaits a series of US economic data, a weaker US dollar continues to support nonferrous metals, while ongoing LME destocking also provides support for LME zinc. LME zinc is expected to fluctuate mainly.

Overnight, the most-traded SHFE zinc 2604 contract opened at 24,545 yuan/mt. At the beginning of the session, bears increased their positions, causing SHFE zinc to quickly drop to a low of 24,400 yuan/mt. Subsequently, the price center shifted upward, and SHFE zinc fluctuated upward, reaching a high of 24,590 yuan/mt toward the end of the session. It finally closed up at 24,520 yuan/mt, falling by 45 yuan/mt, a decline of 0.18%. Trading volume dropped to 19,994 lots, and open interest increased by 582 lots to 78,320 lots. Overnight, SHFE zinc recorded a small bearish candlestick. Fundamentally, domestic inventory continues to accumulate, and downstream sectors have largely entered the holiday period. Fundamentals are dragging down SHFE zinc, causing its price center to shift downward.

Data source statement: Except for publicly available information, other data are processed by SMM based on public information, market communication, and SMM's internal database model, and are for reference only, not constituting decision-making advice.