Domestic Spot Zinc Remains Tight, Expected to Continue Supporting Zinc Prices [SMM Zinc Morning Comment]

Overnight, the number of initial jobless claims in the US last week was lower than expected; Netanyahu stated that Israel's strikes on the Houthi forces have just begun; Putin said Russia is ready to continue supplying natural gas to Europe via Poland; South Korea is considering a visa-free trial policy for Chinese group tourists; CATL plans to issue H-shares and list them on the Hong Kong Stock Exchange.

Overnight, LME zinc was closed for the Christmas holiday. The number of initial jobless claims in the US last week was below expectations, yet the US dollar index remained near a two-year high. LME zinc is expected to maintain a fluctuating trend.

Overnight, the most-traded SHFE zinc 2502 contract opened at 25,425 yuan/mt. At the beginning of the session, bulls increased their positions, pushing SHFE zinc to fluctuate upward above the daily moving average, reaching a high of 25,520 yuan/mt. Subsequently, bears increased their positions, causing SHFE zinc to fluctuate downward below the daily moving average, hitting a low of 25,375 yuan/mt. This was followed by intense competition between bulls and bears, with the center of SHFE zinc fluctuating around 25,420 yuan/mt. It eventually closed higher at 25,420 yuan/mt, up 25 yuan/mt or 0.10%. Trading volume decreased to 48,625 lots, while open interest increased by 1,820 lots to 152,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the upper Bollinger Band forming resistance and various moving averages below providing support. Although imported zinc ingots are gradually flowing into the domestic market, the current spot market remains relatively tight, which is expected to provide some support for zinc prices.