SHFE Zinc Records a Five-Day Winning Streak, Daily Candlestick Center Continues to Rise [SMM Zinc Morning Comment]

Overnight, Hamas and Israel accused each other of obstructing ceasefire negotiations; it was reported that Russia began using Bitcoin in foreign trade; the MLF was partially renewed at 300 billion yuan, with the RRR cut window still open; Japan announced plans to ease visa requirements for Chinese tourists; and the Ministry of Finance will launch a pilot program to address abnormally low prices in government procurement.

Overnight, LME zinc was closed for the Christmas holiday.

Overnight, the most-traded SHFE zinc 2502 contract opened at 25,480 yuan/mt. At the beginning of the session, bulls and bears engaged in intense competition, with SHFE zinc fluctuating around the daily moving average. It dipped to a low of 25,405 yuan/mt before bulls increased their positions, driving SHFE zinc to fluctuate upward and reach a high of 25,515 yuan/mt. It eventually closed higher at 25,505 yuan/mt, up by 80 yuan/mt or 0.31%. Trading volume decreased to 37,451 lots, while open interest increased by 4,940 lots to 148,000 lots. Overnight, SHFE zinc formed a small bullish candlestick, with resistance at the upper Bollinger Band and support from various moving averages below. As year-end approaches, downstream consumption is expected to gradually weaken; however, tightness in the spot market continues to support zinc prices, which are likely to hover at highs in the short term.