China’s Zinc Ingot Inventory Continued Destocking on Monday, SHFE Zinc Center Moved Higher [SMM Zinc Morning Comment]

SMM News, March 24:

Overnight, LME zinc opened at $3,040.5/mt. After the opening, LME zinc fluctuated rangebound. During the session, LME zinc surged rapidly to a high of $3,183/mt, then quickly pulled back to near the daily average line, and subsequently fluctuated upward along the daily average line, finally closing up at $3,103/mt, up $47/mt, or 1.54%. Trading volume increased to 16,643 lots, and open interest rose by 27 lots to 206,000 lots. Overnight, LME zinc recorded a bullish candlestick, with the upper Bollinger Bands forming resistance. Macro sentiment improved somewhat, and the US dollar index dropped back slightly from highs, boosting non-ferrous metals higher as LME zinc rebounded from lows.

Overnight, the most-traded SHFE zinc 2605 contract opened at 22,960 yuan/mt. After the opening, SHFE zinc fluctuated around the daily average line. Early in the session, SHFE zinc touched a low of 22,915 yuan/mt, and during the session it hit a high of 23,150 yuan/mt, finally closing up at 23,075 yuan/mt, up 275 yuan/mt, or 1.21%. Trading volume increased by 14,306 lots to 78,945 lots, and open interest rose by 117 lots to 104,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the 10-day moving average above forming resistance. The strength in the external market boosted the internal market higher, coupled with the continued decline in SMM zinc ingot inventory on Monday and the gradual improvement in fundamentals, the center of the SHFE zinc night session moved higher.

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