Supply-Demand Resonance on Both Ends, SHFE Zinc Maintains Fluctuating Trend [SMM Zinc Morning Comment]

SMM December 10 News:

       Overnight, the LME zinc contract opened at $3,089.5/mt. At the beginning of the session, LME zinc rose to a high of $3,111/mt, then encountered resistance, pulled back, and maintained a fluctuating downward trend. Entering the night session, it touched a low of $3,072.5/mt, and finally closed down at $3,075/mt, falling $14.5/mt, a decrease of 0.45%. Trading volume decreased to 91,626 lots, and open interest fell by 217 lots to 222,000 lots. On December 10, LME zinc inventory increased by 1,650 mt to 59,800 mt, a rise of 2.84%. In the early hours of this morning Beijing time, the US Fed cut interest rates by 25 basis points, largely in line with market expectations. Meanwhile, overseas zinc inventories continued to increase, alleviating low inventory pressure, leading to a slight downward shift in the LME zinc price center. Overnight, LME zinc recorded a long upper shadow bearish candlestick, with support provided by the 20-day and 60-day daily average lines below.

        Overnight, the most-traded SHFE zinc 2601 contract opened at 23,050 yuan/mt. At the beginning of the session, it touched a high of 23,065 yuan/mt, then continuously moved downward, probing a low of 22,920 yuan/mt. Subsequently, bears reduced their positions, and SHFE zinc fluctuated upward above the daily average line, finally closing at 23,005 yuan/mt, down 70 yuan/mt, a decrease of 0.30%. Trading volume decreased to 40,384 lots, and open interest fell by 1,654 lots to 91,525 lots. Overnight, SHFE zinc recorded three consecutive bearish candlesticks, with support still provided by the 10-day and 60-day daily average lines below. Currently, domestic consumption shows no significant bright spots, while supply is gradually tightening; the supply-demand resonance is causing SHFE zinc to maintain a fluctuating trend.