SHFE Zinc Records Three-Day Winning Streak, Daily K-Line Moves Upward [SMM Zinc Morning Comment Nov 21]

Overnight, US Fed's Bowman stated that progress in reducing inflation seems to have stalled; Trump's team is considering establishing the first-ever cryptocurrency-related job title at the White House; the US vetoed the UN Security Council's resolution on a Gaza ceasefire; Nvidia's earnings report exceeded expectations but failed to meet everyone's expectations; foreign media reported that Ukraine fired British-made missiles at Russia; the State Council Information Office held a regular policy briefing on November 22; major asset restructurings of Guotai Junan and Haitong Securities were approved by the Shanghai SASAC; Quantitative Fund responded to the arrest of an employee involved in brokerage rebates.

Overnight, LME zinc opened at $2,969/mt, initially fluctuating upward along the daily moving average. During European trading hours, LME zinc accelerated upward, reaching a high of $3,007/mt. Subsequently, longs took profits, causing LME zinc to fluctuate downward, consolidating near the daily moving average. Entering the night session, LME zinc accelerated its decline, hitting a low of $2,955/mt, before rebounding to the daily moving average and closing up at $2,976.5/mt, an increase of $10.5/mt or 0.35%. Trading volume increased to 11,263 lots, and open interest decreased by 4,232 lots to 241,000 lots. Overnight, LME zinc recorded a four-day winning streak, with the 10-day moving average forming resistance above and the 5-day moving average providing support below. Overnight LME inventory increased by 7,375 mt to 268,325 mt, an increase of 2.83%, continuing its upward trend. Recently, market rumors of production cuts have resurfaced, causing LME zinc to rise slightly. However, the strengthening US dollar and increasing inventory have pressured LME zinc's upward movement.

Overnight, the most-traded SHFE zinc 2412 contract opened at 25,150 yuan/mt, initially fluctuating upward along the daily moving average, reaching a high of 25,270 yuan/mt. Subsequently, shorts targeted SHFE zinc at highs, causing it to fluctuate downward to a low of 25,065 yuan/mt. By the end of the session, it rebounded to the daily moving average, closing up at 25,170 yuan/mt, an increase of 220 yuan/mt or 0.88%. Trading volume decreased to 53,798 lots, and open interest increased by 586 lots to 98,559 lots. Overnight, SHFE zinc recorded a three-day winning streak, with the daily K-line moving upward and the MACD bearish bars narrowing. In October, zinc concentrate imports decreased by 18% MoM to 330,000 mt, lower-than-expected. Supply reduction has caused zinc prices to fluctuate at highs.