SHFE Zinc Prices Rise, Attention on Subsequent Inflows of Imported Zinc Ingots [SMM Zinc Morning Comment Nov 14]

US CPI met market expectations, raising expectations for a December interest rate cut; officials said Iran had withdrawn its decision to retaliate against Israel; rumors suggest Israel wants to present Trump with a diplomatic gift of a Lebanon-Israel ceasefire; new housing transaction tax policies were announced; CICC and Galaxy responded to merger rumors: unknown.

Overnight, LME zinc opened at $2,948/mt, initially moving downward along the daily moving average to a low of $2,905/mt. LME zinc then rebounded from the low, twice surging to a high of $2,993/mt, before dropping back slightly and closing up at $2,970.5/mt, up $24/mt, or 0.81%. Trading volume increased to 11,929 lots, and open interest rose by 2,835 lots to 247,000 lots. Overnight, LME zinc recorded a bullish candlestick, with support from the lower Bollinger Band. LME zinc inventory decreased by 2,300 mt to 243,225 mt, a drop of 0.94%. The US October non-seasonally adjusted CPI rose to 2.6% MoM, meeting market expectations, raising expectations for a December interest rate cut by the US Fed, and LME zinc rebounded during the session.

Overnight, the most-traded SHFE zinc 2412 contract opened at 24,675 yuan/mt, initially dipping to 24,665 yuan/mt, then fluctuating around the daily moving average, and nearing the close, it surged to a high of 24,995 yuan/mt, finally closing up at 24,925 yuan/mt, up 340 yuan/mt, or 1.38%. Trading volume decreased to 109,000 lots, and open interest increased by 1,970 lots to 106,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with resistance from the 40-day moving average. Driven by the overseas market, SHFE zinc also rose during the night session. However, with the recent opening of the zinc ingot import window, domestic zinc ingot supply may be somewhat supplemented, potentially weakening the support for zinc prices from the supply side. Attention should be paid to subsequent inflows of imported zinc ingots.