[Low Inventory Supports Zinc Prices, SHFE Zinc Maintains Fluctuating Trend]: The most-traded SHFE zinc 2502 contract opened at 24,905 yuan/mt, initially dipped to a low of 24,885 yuan/mt, then slightly rebounded above the daily moving average, reaching an intraday high of 25,060 yuan/mt during the midday session. It subsequently fluctuated around the daily moving average and finally closed higher at 24,960 yuan/mt, up 65 yuan/mt, an increase of 0.26%...

[From the Supply-Demand Pattern Perspective: 2025 Zinc Ingot Long-Term Contract Prices] As the transition between the old and the new approaches, the execution of 2025 long-term contracts is expected to commence. The market is paying close attention to the signing of long-term contracts by zinc smelters for the coming year. SMM has compiled the 2025 long-term contract price information of some enterprises as follows:

【Refined Zinc Imports in November Down 39.15% MoM, Potential Increase in December?】According to the latest customs data, refined zinc imports in November 2024 totaled 35,200 mt, down 22,600 mt or 39.15% MoM, and down 32.04% YoY. From January to November, cumulative refined zinc imports reached 412,800 mt, up 15.41% YoY. Refined zinc exports in November were 400 mt, resulting in net imports of refined zinc at 34,700 mt for the month.

[Zinc Prices Fall Back From Highs: How Is Downstream Consumption Performing?] Zinc consumption overall remained relatively stable during the week. Galvanizing operating rates slightly declined, primarily due to the drop in ferrous metals prices and the gradual completion of winter projects in northern regions. Additionally, environmental protection-driven production restrictions in areas such as Shandong, Henan, and Anhui also contributed to the slight decline in operating rates.

[SMM Zinc Morning Comment] LME zinc recorded a four-day losing streak overnight, with the center of the daily candlestick moving downward. Overnight, LME zinc inventory decreased by 2,875 mt to 257,525 mt, a drop of 1.1%, marking a reduction in LME inventory. Initial jobless claims in the US fell more than expected, reinforcing cautious interest rate cut expectations for the future. The US dollar index surged to a two-year high, leading to a collective pullback in base metals, with the center of LME zinc moving downward.

[SMM Morning Meeting Summary: Poor Macro Sentiment Drives Zinc Prices Down] SHFE zinc recorded five consecutive declines overnight, with the 40-day moving average forming resistance and the KDJ indicator expanding downward. Although social inventory decreased overnight, poor macro sentiment weighed on zinc prices.

[SMM Zinc Morning Comment] LME zinc recorded a three-day losing streak overnight, with various moving averages above forming resistance. Overnight, LME zinc inventory decreased by 1,700 mt to 260,400 mt, a drop of 0.65%, with LME inventory continuing to decline. The US dollar remained strong, and the US Fed unexpectedly issued hawkish interest rate cut remarks, causing the center of LME zinc to shift downward.

[SMM Morning Meeting Summary: Strong US Dollar, Zinc Price Center Moves Downward] SHFE zinc recorded a four-day losing streak overnight, with the 40-day moving average providing support below. Overnight, SHFE zinc fluctuated downward as supply-side support weakened, overall open interest decreased, and capital favour declined. However, the spot market remained relatively tight, limiting its decline to some extent.

[SMM Zinc Morning Comment] LME zinc recorded a bearish candlestick overnight, with the 40-day moving average forming resistance above and the 5-day moving average providing support below. Overnight, LME inventory decreased by 4,400 mt to 262,100 mt, a decline of 1.65%, continuing its reduction trend. US retail sales data exceeded expectations overnight, and a stronger US dollar exerted pressure on zinc prices. Additionally, the ratio of LME cancelled warrants slightly pulled back from high levels, bearish funds increased, and the center of LME zinc prices slightly dipped. Attention is on today's US Fed monetary policy meeting decision.

[SMM Morning Meeting Summary: Supply Tightness Driving Logic Weakens, SHFE Zinc Records Three Consecutive Declines] Overnight, SHFE zinc recorded three consecutive declines, with the 5-day and 10-day moving averages forming resistance, and the KDJ indicator expanding downward. As supply-side issues ease, the driving logic of supply tightness has started to weaken. However, demand remains better-than-expected in the off-season, inventory is at a seasonal low, and spot premiums are fluctuating at highs. Zinc prices are expected to have limited downside room.