Macro sentiment weakens, SHFE zinc declines [SMM Zinc Morning Comment]

SMM November 18:

Overnight, LME zinc opened at $3,011/mt. In early trading, it fluctuated along the daily average line. Entering the night session, it briefly rose to a high of $3,038/mt. Subsequently, bulls reduced their positions, and LME zinc fluctuated downward, hitting a low of $2,987/mt by the end of the session. It finally closed down at $2,989.5/mt, down $25/mt, a decrease of 0.83%. Trading volume fell to 11,149 lots, and open interest decreased by 3,059 lots to 224,000 lots. Overnight, LME zinc recorded a bearish candlestick with a long upper shadow. Expectations for a US Fed interest rate cut in December continued to weaken, the US dollar strengthened, and nonferrous metals came under pressure. Additionally, small amounts of metal were shipped to LME delivery warehouses intermittently, alleviating concerns about low inventory. The price center of LME zinc shifted downward. LME zinc is expected to be in the doldrums today.

Overnight, the most-traded SHFE zinc 2512 contract opened at 22,460 yuan/mt. In early trading, it briefly touched a high of 22,465 yuan/mt. Subsequently, bulls reduced their positions, and SHFE zinc plunged, hitting a low of 22,370 yuan/mt by the end of the session. It finally closed down at 22,390 yuan/mt, down 75 yuan/mt, a decrease of 0.33%. Trading volume fell to 35,712 lots, and open interest decreased by 1,807 lots to 89,643 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the KDJ line opening downward. Macro sentiment gradually weakened. Expectations for smelter production cuts and zinc ingot exports still provided bottom support, but consumption showed no signs of improvement. SHFE zinc came under pressure. SHFE zinc is expected to be in the doldrums today.

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