Supply Still Provides Support, SHFE Zinc Continues to Rise [SMM Zinc Morning Comment]

SMM December 18:

Overnight, LME zinc opened at $3,065/mt. In early trading, LME zinc fluctuated considerably along the daily moving average. Later, during European trading hours, bulls reduced their positions, causing LME zinc to quickly fall and test a low of $3,045/mt. Subsequently, the downward momentum weakened, and LME zinc rallied, touching a high of $3,082/mt during the night session, eventually closing down at $3,058/mt, down $13.5/mt, a decrease of 0.44%. Trading volume fell to 9,734 lots, and open interest decreased by 395 lots to 227,000 lots. Overnight, LME zinc recorded a small bearish candlestick. The continued pace of shipments to LME delivery warehouses alleviated inventory concerns, leading to a slight downward shift in the center of LME zinc. LME zinc is expected to fluctuate today.

Overnight, the most-traded SHFE zinc 2602 contract opened at 22,985 yuan/mt. In early trading, SHFE zinc briefly fell to test a low of 22,935 yuan/mt. Subsequently, bulls increased their positions, and SHFE zinc fluctuated upward, touching a high of 23,085 yuan/mt towards the end of the session, eventually closing up at 23,060 yuan/mt, up 25 yuan/mt, an increase of 0.11%. Trading volume fell to 43,757 lots, and open interest increased by 959 lots to 84,684 lots. Overnight, SHFE zinc recorded a small bullish candlestick. Domestic zinc ingot inventories continued destocking, while zinc concentrate TCs kept declining, indicating strong support from the domestic zinc supply side. The center of SHFE zinc shifted upward. SHFE zinc is expected to fluctuate today.