Macro sentiment weakened, SHFE zinc center moved downward [SMM Zinc Morning Comment]

SMM December 12 News:

 Last Friday, the LME zinc contract opened at $3,192/mt. In early trading, it fluctuated around the daily average line, then climbed to a high of $3,210/mt during European trading hours. Subsequently, during the night session, bears increased their positions, causing LME zinc to fluctuate downward and hit a low of $3,117.5/mt by the end of the session. It finally closed down at $3,139/mt, a decrease of $59/mt or 1.84%. Trading volume dropped to 18,376 lots, while open interest increased by 3,372 lots to 223,000 lots. Last Friday, LME zinc formed a large bearish candlestick. The optimistic sentiment brought by the US Fed's interest rate cut faded, the US dollar index rebounded, and nonferrous metals generally came under pressure, leading to a decline in LME zinc. It is expected that LME zinc will mainly fluctuate today.

Last Friday, the most-traded SHFE zinc 2601 contract opened at 23,480 yuan/mt. In early trading, it briefly rose to a high of 23,600 yuan/mt, but then bulls reduced their positions, causing SHFE zinc to plunge and hit a low of 23,205 yuan/mt by the end of the session. It finally closed down at 23,305 yuan/mt, a decrease of 300 yuan/mt or 1.27%. Trading volume dropped to 120,000 lots, while open interest decreased by 4,925 lots to 86,449 lots. Last Friday, SHFE zinc formed a small bearish candlestick. Macro optimism weakened somewhat, and nonferrous metals generally fell. However, zinc concentrate TCs continued to decline, smelter profits were squeezed reducing production willingness, domestic zinc ingot destocking continued, and supply-side support remained. It is expected that SHFE zinc will mainly fluctuate today.