Zinc prices on the SHFE opened lower during the night session, with the center shifting downward. [SMM Zinc Morning Comment]

SMM, December 25:

Overnight, LME zinc opened at $3,105/mt. After opening, LME zinc fluctuated upward, touched a high of $3,132/mt, then pulled back all the way, approaching a low of $3,070/mt near the session's end. Subsequently, LME zinc saw a slight rebound from the low, finally closing down at $3,086.5/mt, a decrease of $10/mt or 0.32%. Trading volume decreased to 5,944 lots, and open interest decreased by 646 lots to 227,000 lots. Overnight, LME zinc formed a bearish candlestick, with support provided by the 5-day and 20-day daily averages below. US Q3 GDP grew 4.3% QoQ, exceeding market expectations. The strong economic data boosted demand prospects, but LME zinc ingot inventory continued to rise above 100,000 mt. LME zinc rose first then fell, continuing its fluctuating trend.

Overnight, the most-traded SHFE zinc 2602 contract opened at 23,085 yuan/mt. At the beginning of the session, it touched a high of 23,095 yuan/mt, then zinc prices fluctuated around the daily average. Approaching the session's end, it touched a low of 22,910 yuan/mt, followed by a slight rebound near the daily average, finally closing down at 23,000 yuan/mt, a decrease of 230 yuan/mt or 0.99%. Trading volume increased to 81,845 lots, and open interest increased by 81 lots to 95,116 lots. Overnight, the most-traded SHFE zinc contract formed a bearish candlestick, with resistance from the 5-day and 10-day daily averages above. Influenced by LME movements, SHFE zinc opened lower with a gap in the night session. Downstream consumption remained sluggish towards the end of the year, but supply-side factors provided some support. The decline in SHFE zinc during the night session was limited, but its price center shifted lower.

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