Domestic Inventory Continues to Decline, SHFE Zinc Records a Long Lower Shadow Bearish Candlestick [SMM Zinc Futures Brief Review]

SMM December 15:

       The most-traded SHFE zinc 2601 contract opened at 23,335 yuan/mt. At the beginning of the session, bears reduced their positions, and SHFE zinc fluctuated upward to near the daily average line. Subsequently, a tug-of-war between longs and shorts ensued, with SHFE zinc fluctuating rangebound along the daily average line. It finally closed down at 23,430 yuan/mt, falling 175 yuan/mt, or 0.74%. Trading volume decreased to 169,000 lots, and open interest fell by 8,072 lots to 83,302 lots. SHFE zinc recorded a long lower shadow bearish candlestick, with the 10-day and 60-day daily average lines providing support. The domestic market gradually digested macro tailwinds, while downstream demand performance was mediocre. However, according to SMM data, as of Monday, domestic social inventory continued to decline, and domestic TCs continued to move lower, providing some support for SHFE zinc. SHFE zinc was expected to maintain a fluctuating trend in the short term.

       Intraday, the SHFE zinc 2512 contract opened at 23,300 yuan/mt and fluctuated rangebound around the daily average line throughout the day. It finally closed down at 23,400 yuan/mt, falling 185 yuan/mt, or 0.78%. Trading volume decreased to 310 lots, and open interest fell by 80 lots to 2,900 lots. Delivery volume was 14,500 mt, and the settlement price was 23,365 yuan/mt.