Domestic Inventory Declines, SHFE Zinc Center Moves Upward [SMM Zinc Futures Brief]

SMM, January 16: The most-traded SHFE zinc 2503 contract opened at 23,815 yuan/mt. In early trading, SHFE zinc briefly climbed to a high of 23,900 yuan/mt. Subsequently, as bulls reduced positions, SHFE zinc fluctuated downward, hitting a low of 23,540 yuan/mt in the afternoon. Later, as bears reduced positions, SHFE zinc's center moved upward, ultimately closing with a gain at 23,760 yuan/mt, up 235 yuan/mt or 1%. Trading volume increased to 161,000 lots, and open interest rose by 5,598 lots to 107,000 lots. SHFE zinc recorded a long upper shadow candlestick. According to SMM, as of this Thursday (January 16), the total zinc ingot inventory across SMM's seven regions stood at 58,800 mt, up 800 mt from January 9 but down 2,200 mt from January 13. Domestic inventory declined, providing renewed support for SHFE zinc from a fundamental perspective. Macro-wise, CPI data came in below expectations, alleviating market concerns over accelerating inflation. The US dollar index pulled back, and base metals broadly rose. SHFE zinc is expected to fluctuate in the evening.

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