Domestic Inventory Slightly Increased, Zinc Prices May Fluctuate Downward in the Short Term [SMM Zinc Futures Brief Review]

SMM January 20 News: The most-traded SHFE zinc 2503 contract opened at 24,335 yuan/mt. At the beginning of the session, longs reduced their positions, causing SHFE zinc to fluctuate downward below the daily moving average. Subsequently, the center of SHFE zinc fluctuated rangebound around 24,200 yuan/mt, and it eventually closed lower at 24,215 yuan/mt, down 10 yuan/mt or 0.04%. Trading volume increased to 214,000 lots, while open interest decreased by 1,825 lots to 103,000 lots. SHFE zinc recorded a bearish candlestick, with resistance formed by the 20-day and 60-day moving averages above, and support provided by the 5-day moving average below. According to SMM communication, as of this Monday (January 20), the total zinc ingot inventory across SMM's seven surveyed regions stood at 59,400 mt, down by 1,600 mt compared to January 13, but up by 600 mt compared to January 16, indicating an increase in domestic inventory. Meanwhile, downstream sectors have gradually entered the off-season, and zinc prices are expected to fluctuate downward.

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