Domestic Inventory Declines, SHFE Zinc Center Shifts Up [SMM Zinc Morning Comment]

SMM November 20 News:

Overnight, the LME zinc contract opened at $2,996/mt. It fluctuated around the daily average line in early trading, then dipped to $2,978.5/mt during European trading hours. Subsequently, bulls increased their positions, and LME zinc fluctuated upward, reaching a high of $3,036.5/mt during the night session, finally closing up at $3,003.5/mt, up $13.5/mt, a gain of 0.45%. Trading volume increased to 11,620 lots, and open interest rose by 2,373 lots to 221,000 lots. Overnight, LME zinc formed a small bullish candlestick, breaking above the 5-day and 10-day daily averages. Despite an unexpected significant increase in US non-farm payrolls, the unemployment rate hit a four-year high, making expectations for a US Fed interest rate cut more complex. With capital entering the market, the price center of LME zinc shifted upward. LME zinc is expected to fluctuate at highs today.

Overnight, the most-traded SHFE zinc 2601 contract opened at 22,490 yuan/mt. It briefly fell to a low of 22,470 yuan/mt in early trading, then rose to a high of 22,600 yuan/mt as bulls increased their positions. Later, its price center moved down near the daily average line, finally closing up at 22,525 yuan/mt, up 140 yuan/mt, a gain of 0.63%. Trading volume decreased to 45,746 lots, and open interest increased by 741 lots to 89,603 lots. Overnight, the SHFE zinc contract formed a small bullish candlestick, testing the 5-day and 10-day daily averages. Domestic inventory decreased, and consumption remained resilient. Zinc ingot exports in October were 8,500 mt, with further exports expected in November. The price center of SHFE zinc shifted upward. SHFE zinc is expected to fluctuate today.

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