Social Inventory of Zinc Ingots Rose Again on Monday, SHFE Zinc Center Moved Lower [SMM Zinc Morning Comment]

SMM July 14:

Overnight, LME zinc opened at $3,602.5/mt. In early trading, LME zinc touched a high of $3,605/mt, then drifted lower throughout the session. Near the end, LME zinc hit a low of $3,556/mt, finally settling down at $3,567/mt, down $44.5/mt, a decline of 1.23%. The trading volume decreased to 10,032 contracts, and open interest decreased by 1,001 contracts to 267,000 contracts. Overnight, LME zinc formed a bearish candlestick, with support from the 5-day moving average below. The escalating tensions in the Middle East continued to heighten market concerns about inflation, and the US dollar index kept rising, putting pressure on LME zinc to continue sliding, with its center shifting lower.

Overnight, the most-traded SHFE zinc 2609 contract opened at 24,730 yuan/mt. After opening, SHFE zinc fluctuated slightly lower. In early trading, it touched a high of 24,785 yuan/mt, and near the end, it hit a low of 24,675 yuan/mt, finally settling down at 24,690 yuan/mt, down 70 yuan/mt, a decline of 0.28%. The trading volume decreased to 23,119 contracts, and open interest increased by 2,483 contracts to 84,109 contracts. Overnight, SHFE zinc formed a bearish candlestick, with support from the 60-day moving average below. Fundamentally, downstream consumption performed poorly during the off-season. On Monday, SMM zinc ingot inventories increased again. Furthermore, the decline in the LME market dragged down the SHFE market, and the center of SHFE zinc continued to shift lower in the night session.

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