Domestic spot market performance is average, SHFE zinc maintains fluctuating trend [SMM Zinc Morning Comment]

SMM November 12 News:

      Overnight, LME zinc opened at $3,084.00/mt. At the beginning of the session, its price center rose to $3,088/mt, then pulled back. During the European trading hours, it once fell to $3,046.35/mt. After entering the night session, LME zinc recovered part of the losses, finally closing at $3,069/mt, down $16.5/mt or 0.53% from the previous trading day. Trading volume increased to 141,000 lots, while open interest decreased by 750 lots to 220,000 lots. On November 11, LME zinc inventory increased by 400 mt to 35,300 mt, up 1.15%. Overnight, LME zinc recorded a bearish candlestick, supported by the 20/60-day daily average moving averages below. Overseas zinc inventory increased slightly, and tight supply eased somewhat, leading to a slight pullback in LME zinc's price center.

      Overnight, the most-traded SHFE zinc 2512 contract opened at 22,565 yuan/mt, hitting a low of 22,565 yuan/mt at the opening, then fluctuated upward to a high of 22,685 yuan/mt, and dropped back slightly at the end of the session, finally closing at 22,655 yuan/mt, down 20 yuan/mt or 0.09%. Trading volume decreased to 33,178 lots, while open interest fell by 190 lots to 107,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, supported by the 20/60-day daily average moving averages below. Currently, domestic spot zinc consumption remains weak, but the recent continuous opening of the zinc ingot export window has driven an increase in exports, and smelter production is expected to be lower than market expectations. These two factors together provide some support for SHFE zinc, maintaining a fluctuating trend.