Supply Remains Supportive, SHFE Zinc Rises [SMM Zinc Morning Comment]

SMM December 18 News:

Last night, the LME zinc contract opened at $3,041.5/mt. It fluctuated around the daily average line in early trading, then briefly dipped to a low of $3,034.5/mt during the European session. Subsequently, bears increased their positions, and LME zinc fluctuated upward, reaching a high of $3,085.5/mt during the night session, finally closing up at $3,071.5/mt, an increase of $36.5/mt, or 1.20%. Trading volume decreased to 13,235 lots, and open interest fell by 5,382 lots to 227,000 lots. Last night, LME zinc ended a three-day losing streak to record a small bullish candlestick. The market remained concerned about US employment data, the US dollar index declined, nonferrous metals generally rose, and the price center of LME zinc moved upward. LME zinc is expected to fluctuate today.

Last night, the most-traded SHFE zinc 2602 contract opened at 23,030 yuan/mt. Bulls increased their positions in early trading, and SHFE zinc fluctuated upward, with its price center moving up to touch a high of 23,135 yuan/mt. It then fluctuated around the daily average line, finally closing up at 23,065 yuan/mt, an increase of 90 yuan/mt, or 0.39%. Trading volume decreased to 48,067 lots, and open interest increased by 515 lots to 81,289 lots. Last night, SHFE zinc recorded a small bullish candlestick. Fundamentally, environmental protection alerts in many domestic areas dragged on consumption, but domestic zinc supply-side support was strong, and the price center of SHFE zinc moved upward. SHFE zinc is expected to fluctuate today.