Domestic Ore TCs Remain Stable, SHFE Zinc Expected to Maintain Short-Term Fluctuating Trend [SMM Zinc Futures Brief]

SMM December 19:

       The most-traded SHFE zinc 2601 contract opened at 23,000 yuan/mt. After opening, bulls reduced their positions, causing SHFE zinc to fluctuate downward below the daily average line. However, subsequent position reductions by bears drove SHFE zinc to rise and recover its losses, ultimately closing up at 23,065 yuan/mt, an increase of 35 yuan/mt or 0.15%. Trading volume decreased to 63,622 lots, and open interest fell by 6,093 lots to 46,809 lots. SHFE zinc recorded a bullish candlestick. This week, TCs for domestic ore remained stable, but expectations of some supply reductions persisted. Coupled with mediocre end-user consumption and environmental protection-related controls in several northern provinces, demand support was insufficient. SHFE zinc is expected to maintain a fluctuating trend in the short term.