Zinc Ingot Exports Continue to Support, SHFE Zinc Maintains Fluctuating Trend [SMM Zinc Morning Comment]

SMM November 24 News:

Last Friday, LME zinc opened at $3,002.5/mt. In early trading, it touched a high of $3,013/mt, then fluctuated downward throughout the session, hitting a low of $2,954.5/mt. Subsequently, LME zinc rebounded from the low to above the daily average line, finally closing down at $2,992/mt, down $11.5/mt, a decrease of 0.38%. Trading volume increased to 12,605 lots, while open interest decreased by 2,600 lots to 218,000 lots. Last Friday, LME zinc recorded a bearish candlestick, with support from the 5-day moving average below. Recently, LME zinc ingot inventory has been gradually accumulating, weakening the support from inventory on zinc prices. However, dovish remarks from US Fed officials boosted expectations for US Fed interest rate cuts, leading to a partial recovery in LME zinc's decline during the session.

Last Friday, the most-traded SHFE zinc 2601 contract opened at 22,390 yuan/mt. At the opening, it touched a high of 22,390 yuan/mt, then fluctuated downward slightly to a low of 22,245 yuan/mt. Subsequently, SHFE zinc fluctuated rangebound around the daily average line, finally closing down at 22,350 yuan/mt, down 40 yuan/mt, a decrease of 0.18%. Trading volume increased to 54,465 lots, while open interest increased by 4,345 lots to 96,223 lots. Last Friday, SHFE zinc recorded a bearish candlestick, with resistance from the 10-day moving average above. Affected by the LME market, SHFE zinc declined during the night session. However, zinc concentrate TCs continued to decline, leading to expectations for production cuts at smelters. Additionally, zinc ingot exports in November are expected to continue growing, providing fundamental support for zinc prices at the bottom. As a result, SHFE zinc maintained a fluctuating trend during the night session.

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