Domestic Meetings Release Positive News, SHFE Zinc Maintains Fluctuating Trend [SMM Zinc Morning Comment]

SMM December 9 news:

    Overnight, LME zinc opened at $3,095/mt. It initially rose above the daily moving average, then maintained wide fluctuations during the session. Entering the night session, it fluctuated and pulled back, testing a low of $3,090.5/mt. Towards the end of the session, it quickly climbed and touched a high of $3,133.5/mt, finally closing up at $3,130.5/mt, up $32/mt, a gain of 1.03%. Trading volume increased to 128,000 lots, while open interest decreased by 2,099 lots to 220,000 lots. On December 8, LME zinc inventory increased by 2,375 mt to 57,750 mt, up 4.29%. Overnight, LME zinc recorded a bullish candlestick, with support from various moving averages below. The US Fed will hold its interest rate meeting this week, and market hawkish sentiment is relatively strong. The center of LME zinc continued to rise slightly.

  Overnight, the most-traded SHFE zinc 2601 contract opened at 23,250 yuan/mt. It initially touched a high of 23,255 yuan/mt then pulled back. Subsequently, in a tug-of-war between longs and shorts, bears gained the upper hand, and SHFE zinc fell to test a low of 23,095 yuan/mt. Towards the end of the session, short covering led to a slight rise in SHFE zinc, and it finally closed down at 23,170 yuan/mt, down 115 yuan/mt, a loss of 0.49%. Trading volume decreased to 57,277 lots, while open interest decreased by 2,932 lots to 106,000 lots. Overnight, SHFE zinc recorded a small bearish candlestick, with support still present from various moving averages below. The Politburo of the Communist Party of China Central Committee held a meeting yesterday, indicating that in 2026, the economy will continue to implement more proactive fiscal policy and moderately loose monetary policy. Macro sentiment is relatively positive, and domestic inventory decreased again. However, downstream consumption was mediocre. SHFE zinc is expected to continue hovering at highs.