The export window remains open, focus on domestic inventory performance [SMM Zinc Morning Comment]

SMM November 12 News:

      Overnight, LME zinc opened at $3,060/mt. At the beginning of the session, LME zinc fluctuated considerably near the daily average line. During the night session, it dipped to $3,044/mt, then recovered losses and rose to a high of $3,078.5/mt before closing at $3,072/mt, up $3/mt, a gain of 0.10%. Trading volume increased to 147,000 contracts, and open interest rose by 946 contracts to 221,000 contracts. On November 12, LME zinc inventory increased by 575 mt to 35,875 mt, up 1.63%. Overnight, LME zinc recorded a small bullish candlestick, supported by the 20/60-day daily average lines below. After the US government resumed operations, a series of economic data will be released. Market participants are continuously assessing the impact of these data on the US Fed's interest rate policy. Amid uncertainty, the US dollar index first rose then fell, and LME zinc also maintained a fluctuating trend.

      Overnight, the most-traded SHFE zinc 2512 contract opened at 22,630 yuan/mt. At the beginning of the session, SHFE zinc dipped slightly to 22,550 yuan/mt, then short-covering by bears pushed SHFE zinc to fluctuate upward, reaching a high of 22,700 yuan/mt. Towards the end of the session, it held up well and closed at 22,685 yuan/mt, up 5 yuan/mt, a gain of 0.02%. Trading volume decreased to 51,762 contracts, and open interest fell by 1,219 contracts to 105,000 contracts. Overnight, SHFE zinc recorded a small bullish candlestick, supported by the 20/60-day daily average lines below. Currently, the export window remains open, providing opportunities for domestic spot cargo to be exported. Combined with the continuously declining TC and zinc ingot production that is expected to fall below expectations, multiple factors continue to provide some support to the bottom for SHFE zinc. Attention is on today's domestic inventory data.