SHFE Zinc Recorded a Bearish Candlestick, Focus on Subsequent Export Performance [SMM Zinc Morning Comment]

SMM November 10 News:

        Last Friday, LME zinc opened at $3,050/mt. At the beginning of the session, the price center fluctuated upward, touching a high of $3,072/mt, then pulled back. During the night session, it once fell to $3,045.5/mt, fluctuated and rebounded towards the end of the session, and finally closed up at $3,066.5/mt, up $15.5/mt or 0.51% from the previous trading day. Trading volume decreased to 91,783 lots, and open interest decreased by 4,145 lots to 221,000 lots. On November 7, LME zinc inventory increased by 800 mt to 34,900 mt, an increase of 2.35%. Last Friday, LME zinc formed a bullish candlestick, supported by the lower 20/60-day daily average lines. Due to the uncertain outlook for the US Fed and the ongoing US government shutdown, market sentiment regarding the future is strong. However, with LME inventory increasing slightly, LME zinc maintained a fluctuating trend.

      Last Friday, the most-traded SHFE zinc 2512 contract opened at 22,720 yuan/mt. At the beginning of the session, it rose to 22,735 yuan/mt, then fluctuated downward, once falling to 22,530 yuan/mt during the session, before rebounding slightly. It finally closed down at 22,575 yuan/mt, down 145 yuan/mt or 0.64%. Trading volume decreased to 56,801 lots, and open interest decreased by 157 lots to 112,000 lots. Last Friday, SHFE zinc formed a bearish candlestick, supported by the lower 10/60-day daily average lines. Driven by the open export window, domestic spot exports have continued recently. Meanwhile, domestic TCs continued to decrease, and ore supply remained tight, providing some support to the bottom for SHFE zinc. Subsequent domestic zinc ingot export volumes will be closely watched.