China Inventory Declined Slightly, Zinc Prices Maintained a Fluctuating Trend at Highs [SMM Zinc Futures Brief]

SMM May 21: The most-traded SHFE zinc 2607 contract opened at 24,910 yuan/mt. After the opening, SHFE zinc continued its strong trend with a gradual rise, touching a high of 24,980 yuan/mt during the session. Bears then increased their positions, causing SHFE zinc to pull back. It dipped to a low of 24,790 yuan/mt near the close, ultimately settling down at 24,805 yuan/mt, a decrease of 105 yuan/mt or 0.42%. Trading volume increased to 39,394 lots, and open interest increased by 5,978 lots to 96,413 lots. SHFE zinc posted a bearish candlestick today, with various moving averages below providing support. China's inventory continued to decline, and combined with low domestic ore TCs, SHFE zinc still had support at the bottom. However, the consumption off-season exerted some pressure on the upside, coupled with macro uncertainties. SHFE zinc was expected to hover at highs in the short term.