Supply Side Continues to Provide Support, SHFE Zinc Maintains Fluctuating Trend [SMM Zinc Futures Brief Review]

SMM December 22:

       The most-traded SHFE zinc 2602 contract opened at 23,090 yuan/mt. After opening, SHFE zinc fluctuated around the daily average line. At the beginning of the session, it touched a low of 23,030 yuan/mt, then fluctuated upward, approaching a high of 23,150 yuan/mt near the session's end, finally settling up at 23,115 yuan/mt, an increase of 25 yuan/mt, or 0.11%. Trading volume increased to 76,575 lots, and open interest increased by 2,447 lots to 90,612 lots. SHFE zinc recorded a bullish candlestick, supported by the 5/10-day moving averages below. Year-end consumption dragged down the market, leading to a slight accumulation of domestic zinc ingot inventory. However, TCs remained low, and smelters' production cuts continued, providing ongoing support to zinc prices from the supply side. SHFE zinc maintained a fluctuating trend.