SHFE Zinc Still Has Bottom Support, Center Moves Up [SMM Zinc Morning Comment]

SMM November 19 News:

Overnight, the LME zinc contract opened at $2,987/mt. At the beginning of the session, bulls reduced their positions, causing LME zinc to fluctuate downward. During European trading hours, it touched a low of $2,961/mt. Subsequently, bears reduced their positions, and LME zinc fluctuated upward throughout the session, reaching a high of $3,012.5/mt toward the close. It finally settled at $2,990.5/mt, up $1/mt, a gain of 0.03%. Trading volume increased to 14,603 lots, while open interest fell by 3,020 lots to 221,000 lots. Overnight, LME zinc formed a long upper shadow bearish candlestick. Weak US employment data weighed on the US dollar, but expectations for a US Fed interest rate cut remained subdued. Additionally, small amounts of zinc were shipped to LME delivery warehouses intermittently, alleviating concerns over low inventory. LME zinc traded in a fluctuating manner, and it is expected to fluctuate today.

Overnight, the most-traded SHFE zinc 2601 contract opened at 22,325 yuan/mt, which was also the intraday lowest price. Subsequently, bulls increased their positions, driving SHFE zinc to rise rapidly and touch a high of 22,480 yuan/mt. However, upward momentum weakened afterward, and SHFE zinc fluctuated downward. It finally settled at 22,385 yuan/mt, up 55 yuan/mt, a gain of 0.25%. Trading volume decreased to 37,710 lots, while open interest increased by 3,131 lots to 85,504 lots. Overnight, SHFE zinc formed a long upper shadow bullish candlestick with no lower shadow. Macro sentiment remained weak, but expectations of reduced zinc supply in November provided bottom support for SHFE zinc, lifting its price center. SHFE zinc is expected to fluctuate today.

Data Source Statement: Except for publicly available information, other data are derived by SMM based on public information, market communication, and SMM's internal database model. They are for reference only and do not constitute decision-making advice.