Upward Momentum Lacking, SHFE Zinc Moves Downwards After a Higher Opening [SMM Zinc Morning Comment]

SMM December 24 News:

Overnight, the LME zinc contract opened at $3,079.5/mt. It initially touched a low of $3,068/mt, then fluctuated upward, reaching a high of $3,135/mt before pulling back below the daily average line. It finally closed up at $3,096.5/mt, gaining $18.5/mt, an increase of 0.6%. Trading volume increased to 10,885 lots, while open interest decreased by 1,391 lots to 228,000 lots. Overnight, LME zinc formed a bullish candlestick, supported by the middle Bollinger Band. The US dollar index continued to weaken, and nonferrous metals generally rose, with copper prices hitting a new high, which also drove zinc prices higher. However, the LME Cash-3M contango structure persisted. LME zinc rose initially then fell, with its overall center shifting slightly upward.

Overnight, the most-traded SHFE zinc 2602 contract opened at 23,290 yuan/mt. After opening, it fluctuated downward, touching a high of 23,315 yuan/mt early in the session and a low of 23,045 yuan/mt near the session's end. It finally closed up at 23,105 yuan/mt, gaining 15 yuan/mt, an increase of 0.06%. Trading volume increased to 108,000 lots, while open interest increased by 1,083 lots to 94,190 lots. Overnight, SHFE zinc formed a bearish candlestick, supported by the 5-day and 10-day daily average lines below. Driven by the LME market, SHFE zinc opened higher with a gap in the night session. However, downstream consumption performance was generally moderate towards the end of the year, and the zinc ingot export window remained closed, leading to insufficient upward momentum for SHFE zinc. After opening, it fluctuated downward.

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