Spot market and demand performance are average, SHFE zinc maintains fluctuating trend [SMM Zinc Morning Comment]

SMM December 10 News:

       Overnight, the LME zinc contract opened at $3,127/mt. At the beginning of the session, it briefly touched a high of $3,127/mt before coming under pressure and pulling back. It then fluctuated downward throughout the session. During European trading hours, an increase in long positions pushed LME zinc above the daily average line, but due to insufficient upward momentum, it declined toward the end of the session, hitting a low of $3,086/mt. It finally closed down at $3,089/mt, falling $41.5/mt, a decrease of 1.33%. Trading volume decreased to 123,000 lots, while open interest increased by 2,111 lots to 222,000 lots. On December 9, LME zinc inventory increased by 400 mt to 58,150 mt, a rise of 4.29%. Overnight, LME zinc recorded a large bearish candlestick, with support provided by the 10-day and 60-day daily average lines below. US job openings rose to their highest level in five months in October. Although hiring remained sluggish, this alleviated concerns about a worsening labor market to some extent, driving the US dollar index higher and causing the center of LME zinc prices to pull back.

       Overnight, the most-traded SHFE zinc 2601 contract opened higher with a gap at 23,120 yuan/mt, reaching its peak at the opening. It then pulled back as long positions were reduced, hitting a low of 22,970 yuan/mt toward the end of the session. It finally closed down at 22,985 yuan/mt, falling 85 yuan/mt, a decrease of 0.37%. Trading volume decreased to 60,379 lots, while open interest fell by 5,536 lots to 95,718 lots. Overnight, SHFE zinc recorded a bearish candlestick, with support provided by the 10-day and 20-day daily average lines below. Currently, domestic inventory continues to decline, and smelter production is expected to decrease. However, recent spot market transactions have been relatively average, with demand being modest. SHFE zinc is expected to maintain a fluctuating trend.