Social Inventory Increase, SHFE Zinc Records Four-Day Losing Streak [SMM Zinc Futures Brief]

SMM January 23 News: The most-traded SHFE zinc 2503 contract opened at 24,070 yuan/mt, starting at a high level. Shortly after the opening, shorts increased their positions, causing SHFE zinc to fluctuate downward below the daily moving average, hitting a low of 23,645 yuan/mt. Subsequently, the center of SHFE zinc fluctuated around 23,690 yuan/mt, eventually closing lower at 23,705 yuan/mt, down 410 yuan/mt or 1.7%. Trading volume increased to 160,000 lots, and open interest rose by 2,461 lots to 100,000 lots. SHFE zinc recorded a four-day losing streak, with the 20-day and 60-day moving averages forming resistance above, while the lower Bollinger Band provided support below. According to SMM communication, as of this Thursday (January 23), the total zinc ingot inventory across SMM's seven regions stood at 62,600 mt, up by 3,800 mt compared to January 16 and by 320 mt compared to January 20, indicating a domestic inventory buildup. Currently, downstream consumption has weakened, spot premiums have declined, domestic inventory has increased, and supply-demand imbalances have significantly eased. Zinc prices are expected to fluctuate downward in the short term.

》Subscribe to view SMM historical spot metal prices