SHFE Zinc Records Three Consecutive Declines, Focus on Domestic and Overseas Inventory Changes [SMM Zinc Futures Brief Review]

SMM December 17:

       The most-traded SHFE zinc 2601 contract opened at 22,855 yuan/mt. After opening, bulls reduced their positions, and SHFE zinc fluctuated upward slightly above the daily average line. Subsequently, a tug-of-war between longs and shorts led the contract to maintain a fluctuating trend, ultimately closing down at 22,850 yuan/mt, a decrease of 70 yuan/mt or 0.30%. Trading volume fell to 104,000 lots, and open interest decreased by 2,382 lots to 80,774 lots. SHFE zinc recorded three consecutive declining sessions, with resistance from the 5-day and 10-day daily average lines above and support from the 20-day and 60-day daily average lines below. Currently, domestic end-use consumption remains mediocre, and enterprises primarily make just-in-time procurement. However, supply-side factors still provide some support to prices. It is expected that prices will maintain a fluctuating trend in the short term. Attention can be paid to domestic and overseas inventory changes.