Downstream operations have not fully resumed, SHFE zinc maintains fluctuating trend [SMM Zinc Morning Comment]

SMM February 26 News:

Overnight, LME zinc opened at $3,387.5/mt. After opening, LME zinc fluctuated upward, touched a high of $3,416.5/mt, then pulled back all the way, approaching the session end, it touched a low of $3,362.5/mt, then rebounded from the low to near the daily average line, finally closed down at $3,387/mt, down $0.5/mt, a decrease of 0.01%. Trading volume decreased to 9,705 lots, and open interest decreased by 782 lots to 229,000 lots. Overnight, LME zinc recorded a small bearish candlestick, with support provided by the 10/20-day daily average lines below. US tariff policies remain unclear, but market expectations for demand improvement boosted nonferrous metal trends. Coupled with low LME zinc ingot inventory, LME zinc continued to hover at highs.

Overnight, the most-traded SHFE zinc 2604 contract opened at 24,590 yuan/mt. After opening, SHFE zinc briefly fluctuated downward, touched a low of 24,550 yuan/mt, then rose all the way, touching a high of 24,715 yuan/mt near the session end, finally closed down at 24,675 yuan/mt, down 35 yuan/mt, a decrease of 0.14%. Trading volume decreased to 39,861 lots, and open interest increased by 1,633 lots to 91,117 lots. Overnight, SHFE zinc recorded a bullish candlestick, suppressed by the middle Bollinger Band. Boosted by LME zinc prices, SHFE zinc also stayed high during the night session. However, downstream enterprises have not fully resumed work, the pace of zinc ingot inventory buildup is expected to continue within the week, fundamental support for zinc prices is insufficient, and SHFE zinc is expected to maintain a fluctuating trend.

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