December Official Manufacturing PMI Remains in Expansion; SHFE Zinc Expected to Hover at Highs [SMM Zinc Futures Brief]

SMM, December 31: The most-traded SHFE zinc 2502 contract opened at 25,260 yuan/mt. At the beginning of the session, longs reduced positions, causing SHFE zinc to fluctuate downward below the daily moving average, hitting a low of 25,185 yuan/mt. Subsequently, shorts reduced positions, driving SHFE zinc to fluctuate upward, peaking at 25,460 yuan/mt by the end of the session. It ultimately closed higher at 25,460 yuan/mt, up 135 yuan/mt or 0.53%. Trading volume decreased to 138,000 lots, and open interest fell by 3,525 lots to 136,000 lots. SHFE zinc recorded a bullish candlestick with no upper shadow, facing resistance at the upper Bollinger Band while finding support at the 40-day and 60-day moving averages. China's official manufacturing PMI for December stood at 50.1, marking three consecutive months of expansion, which boosted market confidence. On the fundamentals side, spot zinc remained tight, and zinc prices are expected to hover at highs.

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