Fundamental Support for Zinc Weakens, SHFE Zinc Center Shifts Downward [SMM Zinc Futures Brief Review]

SMM, December 26: The most-traded SHFE zinc 2502 contract opened at 25,500 yuan/mt. In early trading, bulls increased their positions, pushing SHFE zinc to fluctuate upward and reach a high of 25,640 yuan/mt. It then fluctuated and consolidated around 25,540 yuan/mt. In the afternoon, bears increased their positions, causing SHFE zinc to decline and hit a low of 25,325 yuan/mt. Later, the center shifted upward to around 25,410 yuan/mt, where it fluctuated and consolidated, eventually closing down at 25,395 yuan/mt, a decrease of 30 yuan/mt or 0.12%. Trading volume increased to 149,000 lots, and open interest rose by 7,466 lots to 150,000 lots. SHFE zinc recorded a bearish candlestick. According to SMM, the total zinc ingot inventory across seven regions monitored by SMM stood at 65,200 mt, down by 17,000 mt compared to December 19 and by 4,900 mt compared to December 23, indicating a reduction in domestic inventory. However, macro sentiment weakened, spot arrivals increased, supply tightness gradually eased, and downstream consumption weakened. These factors reduced the fundamental support for zinc prices. SHFE zinc is expected to fluctuate and consolidate tonight.

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