Affected by LME zinc prices, SHFE zinc center declined [SMM morning comment]

SMM November 28:

Overnight, LME zinc opened at $3,056.5/mt. At the beginning of the session, it touched a high of $3,060.5/mt, then mostly maintained a downward trend, hitting a low of $3,011.5/mt near the end of the session, and finally closed down at $3,033/mt, falling by $33/mt, a decrease of 1.08%. Trading volume decreased to 8,392 lots, while open interest increased by 1,834 lots to 222,000 lots. Overnight, LME zinc recorded a bearish candlestick, with support provided by the 5-day moving average. Macro sentiment was gradually digested, while LME zinc ingot inventory continued to accumulate to over 50,000 mt, weakening inventory support for zinc prices, and LME zinc pulled back significantly from highs.

Overnight, the most-traded SHFE zinc 2601 contract opened at 22,370 yuan/mt. At the beginning of the session, it touched a high of 22,370 yuan/mt, then briefly fell to a low of 22,300 yuan/mt, before rebounding above the daily average line and mostly maintaining a fluctuating trend. It finally closed down at 22,335 yuan/mt, falling by 80 yuan/mt, a decrease of 0.36%. Trading volume decreased to 47,071 lots, while open interest decreased by 175 lots to 102,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with resistance from the 10-day moving average. Dragged down by the decline in LME zinc, SHFE zinc opened lower with a gap during the night session. However, the zinc ingot export window remained open, and zinc concentrate TCs continued to decline, providing underlying support for SHFE zinc. In the short term, SHFE zinc is expected to maintain a fluctuating trend.

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