China Inventory Increased but Macro Fluctuations Continued, SHFE Zinc Recorded a Small Bullish Candlestick [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,290/mt. Early in the session, LME zinc fluctuated upward above the daily moving average, but after entering the European trading session, the price pulled back to a low of $3,268.5/mt. After entering the night session, LME zinc rallied strongly, breaking through the resistance of the daily moving average, and touched a high of $3,334/mt near the close, ultimately closing up at $3,325/mt, gaining $40/mt or 1.22%. Trading volume decreased to 8,664 lots, and open interest increased by 291 lots to 212,000 lots. On April 9, LME zinc inventory decreased by 275 mt to 112,050 mt, a decline of 0.24%. Overnight, LME zinc posted a bullish candlestick, with the upper Bollinger Bands rail exerting resistance above and the lower Bollinger Bands rail providing support below. Iran's deputy foreign minister stated that the Strait of Hormuz remains open, with transit requiring coordination with the Iranian side. Meanwhile, a fragile ceasefire agreement in the Gulf region reignited hopes. The US dollar index moved lower, and combined with LME zinc operating at low levels, the center of LME zinc shifted slightly upward.

Overnight, the most-traded SHFE zinc 2605 contract opened at 23,765 yuan/mt. Early in the session, SHFE zinc fluctuated downward to a low of 23,695 yuan/mt, then futures gradually stabilized near the daily moving average and maintained a fluctuating trend. Subsequently, bulls increased positions and the center of SHFE zinc continued to shift upward, touching a high of 23,860 yuan/mt. Near the close, it hovered at highs, ultimately closing up at 23,810 yuan/mt, gaining 45 yuan/mt or 0.19%. Trading volume decreased to 31,616 lots, and open interest decreased by 149 lots to 77,219 lots. According to SMM market communication, as of April 9, China's inventory continued its inventory buildup. Overnight, SHFE zinc posted a small bullish candlestick, with the 40/60-day moving averages exerting resistance above and the 10/20-day moving averages providing support below. Driven by LME movements amid macro sentiment fluctuations, SHFE zinc moved higher. Meanwhile, expectations of declining TCs provided some support for SHFE zinc, but continued increases in China's zinc inventory limited the upside for zinc prices.

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