[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%...

According to an SMM survey, as of Thursday (December 19), total zinc ingot inventories across seven regions tracked by SMM stood at 82,200 mt, down 9,200 mt from December 12 and 7,200 mt from December 16.

According to SMM, as of Thursday (December 19), inventories in the Shanghai Bonded Zone stood at 8,000 mt, down 600 mt WoW.

[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:

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on Dec 20, 2024

【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.

Overnight, LME copper opened at $8,915.5/mt, fluctuated rangebound in early trading, and slightly rose during the session to a high of $8,936.5/mt. The center shifted downward to a low of $8,859.5/mt, and LME copper closed at $8,885/mt, down 1.77%.

[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.