SHFE Zinc Records Four-Day Winning Streak, Zinc Prices Hover at Highs [SMM Zinc Morning Comment Nov 28]

Overnight, US October PCE inflation increased slightly, in line with expectations; two key job titles in Trump's economic team were finalized; a Hamas official stated that they are ready to reach a ceasefire agreement in the Gaza Strip; US media reported that Canada is studying potential retaliatory tariffs against the US; the General Office of the CPC Central Committee and the General Office of the State Council issued the "Action Plan for Effectively Reducing Logistics Costs Across Society"; seven departments jointly issued the "Action Plan for Promoting High-Quality Development of Digital Finance"; interest rates on fixed-term deposits of various maturities fell in October, and the interest rates on large certificates of deposit entered the "1%" range.

Overnight, LME zinc opened at $3,064/mt. Initially, LME zinc's upward movement was obstructed, dipping to $3,054/mt. Subsequently, LME zinc fluctuated upward above the daily average, reaching a high of $3,149/mt. It then fluctuated downward near the daily average, with the center of gravity slightly descending below the daily average before recovering, fluctuating around $3,130/mt. It finally closed up at $3,140/mt, an increase of $75/mt, or 2.45%. Trading volume decreased to 99,794 lots, and open interest increased by 2,045 lots to 247,000 lots. Overnight, LME zinc recorded a bullish candlestick, with the upper Bollinger Band forming resistance and the 5-day moving average providing support below. LME inventory increased by 5,275 mt to 260,900 mt, an increase of 2.06%. LME inventory increased. Currently, influenced by a weak US dollar index, LME zinc is rising, and LME inventory increased slightly. LME zinc is expected to hover at highs.

Overnight, the most-traded SHFE zinc 2501 contract opened at 25,800 yuan/mt. Initially, SHFE zinc slightly declined below the daily average, dipping to 25,685 yuan/mt. Subsequently, with increased positions from bulls, SHFE zinc's center of gravity moved upward, fluctuating rangebound around 26,000 yuan/mt, reaching a high of 26,065 yuan/mt. It finally closed up at 26,050 yuan/mt, an increase of 210 yuan/mt, or 0.81%. Trading volume decreased to 180,000 lots, and open interest increased by 13,071 lots to 177,000 lots. Overnight, SHFE zinc recorded a four-day winning streak, with various moving averages below providing support. Currently, influenced by bullish forces in the futures market, SHFE zinc continues to rise. More macro front news can be monitored subsequently, and SHFE zinc is expected to hover at highs.