TCs Continue to Decline SHFE Zinc Maintains Fluctuating Trend [SMM Zinc Morning Comment]

Published: Dec 8, 2025 08:42

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[Zinc Morning Review] Last Friday, the most-traded SHFE zinc 2601 contract opened at 23,190 yuan/mt, initially fell rapidly to a low of 22,965 yuan/mt, then fluctuated upward above the daily average line driven by bulls covering positions, and maintained a rangebound fluctuation until the close, finally closing at 23,065 yuan/mt, down 240 yuan/mt (a decrease of 1.03%), with trading volume decreasing to 82,861 lots......

SMM December 8 News:

Last Friday, LME zinc opened at $3,086/mt, and the price quickly rose after opening, hitting an intraday high of $3,125/mt. Subsequently, bears increased their positions, causing LME zinc to pull back and touch a low of $3,075.5/mt. It maintained a fluctuating trend towards the end of the session, ultimately closing at $3,098.5/mt, up $13.5/mt or 0.44%. Trading volume decreased to 110,000 contracts, while open interest increased by 503 contracts to 222,000 contracts. On December 5, LME zinc inventory increased by 1,050 mt to mt, a rise of 5.37%. Last Friday, LME zinc recorded a long upper shadow bullish candlestick, supported below by the 10-day and 60-day daily average moving averages. As the US core PCE annual rate for September unexpectedly pulled back to 2.8%, hitting a three-month low, the US dollar index declined, and the center of LME zinc prices shifted slightly upward.

Last Friday, the most-traded SHFE zinc 2601 contract opened at 23,190 yuan/mt. At the beginning of the session, SHFE zinc quickly declined, touching a low of 22,965 yuan/mt. Subsequently, bulls covered their positions, pushing SHFE zinc to fluctuate upward above the daily average moving average. It maintained a rangebound fluctuation towards the end of the session, ultimately closing at 23,065 yuan/mt, down 240 yuan/mt or 1.03%. Trading volume decreased to 82,861 contracts, while open interest decreased by 2,163 contracts to 105,000 contracts. Last Friday, SHFE zinc recorded a bald bearish candlestick, supported below by various moving averages. Domestic mine TCs continued to decline, and supply gradually tightened. However, end-use demand showed mediocre performance, and SHFE zinc maintained a fluctuating trend. Market participants focused on domestic inventory performance.

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