Zinc Concentrates TC Continues to Decline, SHFE Zinc Shows Strong Support [SMM Zinc Morning Comment]

SMM November 12 News:

    Last Friday, LME zinc opened at $3,043.5/mt. At the beginning of the session, LME zinc briefly rose to a high of $3,051/mt, but then bulls reduced their positions, causing LME zinc to fluctuate downward throughout the session. During the night session, it touched a low of $2,998/mt, eventually closing down at $3,014.5/mt, down $26/mt, a decrease of 0.86%. Trading volume increased to 16,944 contracts, while open interest decreased by 716 contracts to 228,000 contracts. Last Friday, LME zinc recorded a large bearish candlestick. Hawkish comments from US Fed officials triggered market selling sentiment, weakening expectations for interest rate cuts. Additionally, small, sporadic shipments to LME delivery warehouses have somewhat alleviated concerns over low inventory, leading to a downward shift in LME zinc's price center. LME zinc is expected to be in the doldrums today.

    Last Friday, the most-traded SHFE zinc 2512 contract opened at 22,460 yuan/mt. At the beginning of the session, SHFE zinc briefly touched a low of 22,385 yuan/mt, but then bears reduced their positions, causing SHFE zinc to fluctuate upward throughout the session. By the end of the session, it touched a high of 22,495 yuan/mt, eventually closing up at 22,485 yuan/mt, up 60 yuan/mt, an increase of 0.27%. Trading volume decreased to 48,639 contracts, while open interest decreased by 3,237 contracts to 96,916 contracts. Last Friday, SHFE zinc recorded a bullish candlestick with a long lower shadow. Although macro conditions fell short of expectations, from a fundamental perspective, domestic and imported zinc concentrate TCs continued to decline, smelter production cuts are still expected, coupled with ongoing zinc ingot exports, providing strong fundamental support. SHFE zinc rose, and it is expected to fluctuate at highs today.