China Inventory Continued to Increase, SHFE Zinc Center Shifted Downward [SMM Zinc Morning Comment]

Last Friday, LME zinc opened at $3,318/mt. In the early session, LME zinc fluctuated downward and hit a low of $3,297/mt during the night session. Subsequently, bulls increased their positions, and the LME zinc price center shifted upward, touching a high of $3,338/mt near the close, ultimately closing up at $3,335/mt, gaining $10/mt or 0.3%. Trading volume increased to 8,912 lots, and open interest increased by 772 lots to 213,000 lots. Last Friday, LME zinc posted a small bullish candlestick. The market awaited the results of US-Iran negotiations, and the US dollar weakened, boosting non-ferrous metals, which saw broad-based gains. Meanwhile, low LME inventory provided support for LME zinc, pushing the price center upward. LME zinc is expected to trade in a range-bound pattern today.

Last Friday, the most-traded SHFE zinc 2605 contract opened at 23,690 yuan/mt. It briefly rose to touch a high of 23,725 yuan/mt in the early session, after which bears increased their positions, and SHFE zinc fluctuated downward throughout the session, hitting a low of 23,570 yuan/mt near the close, ultimately closing down at 23,585 yuan/mt, losing 30 yuan/mt or 0.35%. Trading volume decreased to 29,862 lots, and open interest increased by 951 lots to 77,560 lots. Last Friday, SHFE zinc posted a small bearish candlestick. Macro uncertainties increased, China continued to see inventory buildup, and overall consumption fell short of expectations. Fundamentals weighed on zinc prices, and SHFE zinc is expected to trade in the doldrums today.

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