Fundamentals Remain Unchanged, SHFE Zinc Opens Higher with a Gap [SMM Zinc Morning Comment Dec 10]

New York Fed Survey: US 1-Year Inflation Expectations Rise to 2.97%; Syrian Opposition Authorizes Mohammed Bashir to Form Transitional Government; Syrian Embassy in Russia Confirms Assad in Moscow, Kremlin: Decision Made by Putin; South Korean President Yoon Suk-yeol Banned from Leaving the Country; US Plans to Deploy Dark Eagle Hypersonic Missiles in Eurasia; CPC Politburo Meeting: Implement More Active Fiscal Policy and Moderately Loose Monetary Policy to Stabilize Real Estate and Stock Markets; NBS: China's CPI in November Up 0.2% YoY, Down 0.6% MoM; Nvidia Suspected of Violating Antitrust Law, Market Supervision Administration Decides to Launch Investigation.

Overnight, LME zinc opened at $3,071/mt, initially fluctuated downward, hitting a low of $3,062/mt, then rebounded and climbed, reaching a high of $3,153.5/mt near the close, before falling back to near the daily average line, finally closing up at $3,128/mt, up $28/mt, or 1.82%. Trading volume increased to 12,007 lots, and open interest rose by 177 lots to 245,000 lots. Overnight, LME zinc recorded a bullish candlestick, with the 40-day moving average providing support. LME zinc inventory decreased by 725 mt to 278,125 mt, a decline of 0.26%. The CPC Politburo held a meeting to analyze and study the economic work for 2025, proposing to implement more active fiscal policy and moderately loose monetary policy to boost consumption and expand domestic demand, reigniting market optimism, which significantly lifted LME zinc during the day.

Overnight, the most-traded SHFE zinc 2501 contract opened at 25,880 yuan/mt, initially reaching a high of 25,995 yuan/mt, then slightly dipping to 25,805 yuan/mt. During the night session, SHFE zinc fluctuated rangebound around the daily average line, finally closing up at 25,820 yuan/mt, up 230 yuan/mt, or 0.90%. Trading volume decreased to 92,902 lots, and open interest increased by 3,412 lots to 133,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the upper Bollinger Band forming resistance. Macro positive sentiment boosted SHFE zinc to gap higher, coupled with weak supply support on the fundamentals, SHFE zinc fluctuated at highs during the night session.