Zinc Concentrate TCs Continue to Decline, SHFE Zinc Maintains Fluctuating Trend [SMM Zinc Morning Comment]

SMM December 26:

Overnight, LME was closed due to the Christmas holiday.

Overnight, the most-traded SHFE zinc 2602 contract opened at 23,055 yuan/mt. After opening, SHFE zinc fluctuated rangebound around the daily average line. At the beginning of the session, it touched a high of 23,135 yuan/mt, then dropped back slightly to a low of 23,010 yuan/mt, and subsequently maintained a fluctuating trend. It finally closed up at 23,105 yuan/mt, gaining 40 yuan/mt, an increase of 0.17%. Trading volume increased to 57,153 lots, and open interest rose by 1,711 lots to 95,033 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the 20-day moving average forming resistance overhead. The monthly zinc concentrate TCs continued their decline, compressing smelter profits. Ongoing supply reductions continued to support zinc prices. However, considering the off-season consumption at year-end, SHFE zinc maintained a fluctuating trend.

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