Driven by Macro Sentiment, SHFE Zinc Fluctuates at Highs [SMM Zinc Morning Comment]

Overnight, the LME zinc contract opened at $3,087/mt. During the session, it rose stepwise along the daily average line, touched a high of $3,143.5/mt, and finally settled at $3,130/mt, up $46/mt or 1.49%. Trading volume decreased to 11,505 lots, while open interest increased by 4,129 lots to 232,000 lots. Overnight, LME zinc formed a bullish candlestick with its center moving upward and the KDJ indicator's gap expanding. Ahead of the New Year's Day holiday, the market's macro atmosphere was favorable, with high capital enthusiasm and strong speculative buying sentiment, keeping zinc prices fluctuating at highs.

Overnight, the most-traded SHFE zinc 2602 contract opened at 23,360 yuan/mt. At the beginning of the session, bears reduced their positions, pushing the price center upward to touch a high of 23,455 yuan/mt. Subsequently, due to insufficient upward momentum, the center moved downward, and the contract finally settled at 23,400 yuan/mt, up 20 yuan/mt or 0.09%. Trading volume dropped to 58,121 lots, while open interest decreased by 593 lots to 92,877 lots. Overnight, SHFE zinc formed a small bullish candlestick. Although TC remains low, the import window is closed, reducing pressure on the zinc supply side. With macro sentiment heating up, SHFE zinc is expected to fluctuate mainly before the holiday.

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