Fundamentals Still Supportive, Zinc Prices Maintain Fluctuating Trend [SMM Zinc Morning Comment Nov 20]

Overnight, US Fed's Schmid stated that a larger fiscal deficit would not trigger inflation; Norway's largest oil field resumed production; Ukrainian forces used the US Army Tactical Missile System for the first time to strike Russian territory; Putin signed a decree allowing broader use of nuclear weapons; Xi Jinping met with Scholz; Wu Qing: We welcome both long-term and short-term investments; CSRC: Cracking down on financial fraud, fines and confiscations amounted to 11 billion yuan in the first 10 months of this year; large broad-based stock ETFs reduced fees.

Overnight, LME zinc opened at $2,956/mt. After a brief dip at the beginning of the session, LME zinc consolidated around the daily moving average. Near the European trading hours, shorts reduced positions and exited, causing LME zinc to surge quickly, reaching a high of $2,987/mt. Subsequently, shorts targeted LME zinc at high levels, causing it to fluctuate downward, hitting a low of $2,941.5/mt during the night session. By the end of the session, it returned to consolidate around the daily moving average, closing up at $2,966/mt, an increase of $3/mt or 0.1%. Trading volume decreased to 8,960 lots, and open interest decreased by 627 lots to 245,000 lots. Overnight, LME zinc recorded three consecutive gains, with the MACD bearish column narrowing. LME inventory increased by 1,450 mt to 260,950 mt, an increase of 0.56%, recording an inventory rise. The weak performance of the US dollar overnight provided support for non-ferrous metals. Additionally, the market awaited key signals from the US Fed's interest rate policy, leading to relatively cautious capital movements, and LME zinc maintained a fluctuating trend.

Overnight, the most-traded SHFE zinc 2412 contract opened at 24,150 yuan/mt. At the beginning of the session, bulls increased positions, causing SHFE zinc to fluctuate upward, with the center of gravity shifting to 24,870 yuan/mt, peaking at 24,915 yuan/mt. It eventually closed up at 24,860 yuan/mt, an increase of 165 yuan/mt or 0.67%. Trading volume decreased to 49,733 lots, and open interest decreased by 1,526 lots to 95,220 lots. Overnight, the most-traded SHFE zinc 2412 contract opened at 24,150 yuan/mt. At the beginning of the session, bulls increased positions, causing SHFE zinc to fluctuate upward, with the center of gravity shifting to 24,870 yuan/mt, peaking at 24,915 yuan/mt. It eventually closed up at 24,860 yuan/mt, an increase of 165 yuan/mt or 0.67%. Trading volume decreased to 49,733 lots, and open interest decreased by 1,526 lots to 95,220 lots. Overnight, the most-traded SHFE zinc 2412 contract recorded a bullish candlestick, with the 40-day moving average providing support below. On the fundamentals side, consumption slightly improved, and spot premiums remained high, providing some support for zinc prices. Attention should be paid to macro sentiment disturbances.