Social Inventory Records Another Decline, SHFE Zinc Marks Three-Day Winning Streak [SMM Zinc Morning Comment]

Overnight, the LME zinc contract opened at $3,058/mt. In early trading, it consolidated around the daily average line. Approaching the night session, bears reduced positions and exited the market, driving LME zinc upward to touch a high of $3,098.5/mt. The price center shifted upward and fluctuated near $3,085/mt, eventually closing up at $3,091/mt, an increase of $40/mt or 1.13%. Trading volume rose to 14,668 lots, while open interest fell by 1,636 lots to 218,000 lots. On December 1, LME zinc inventory increased by 275 mt to 52,025 mt, up 0.53%. Overnight, LME zinc recorded a bullish candlestick, with the daily candlestick's center moving upward and various moving averages providing support below. The US November ISM Manufacturing PMI fell short of expectations, leading to a decline in the US dollar index. Nonferrous metals generally rose, coupled with the LME Cash-3M backwardation structure maintaining high levels, keeping LME zinc fluctuating at highs.

Overnight, the most-traded SHFE zinc 2601 contract opened at 22,650 yuan/mt. During the session, it fluctuated around the daily average line, with an amplitude not exceeding 200 yuan/mt, eventually closing up at 22,740 yuan/mt, an increase of 220 yuan/mt or 0.98%. Trading volume decreased to 64,076 lots, while open interest increased by 694 lots to 106,000 lots. Overnight, SHFE zinc recorded a three-day winning streak, with the KDJ indicator's gap expanding upward. Amid overnight supply reductions, social inventory recorded another decline, coupled with copper and silver prices hitting new highs again, lifting the zinc price center upward.

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