High Capital Enthusiasm, SHFE Zinc Continues to Rise [SMM Zinc Morning Comment]

 Overnight, the LME zinc contract opened at $3,211/mt. At the beginning of the session, it briefly dipped to a low of $3,190.5/mt, then the price center shifted upward, reaching a high of $3,277/mt during the night session. However, due to insufficient upward momentum, the center pulled back slightly, and it finally closed down at $3,202/mt, down $11.5/mt or 0.36%. Trading volume increased to 19,113 lots, while open interest rose by 1,082 lots to 232,000 lots. Overnight, LME zinc formed a small bearish candlestick with a long upper shadow. The unexpected cooling of US core CPI in December led traders to increase bets on a US Fed interest rate cut in April. Although macro conditions remain favorable, market concerns about demand persist, causing the LME zinc price center to shift slightly downward.

Overnight, the most-traded SHFE zinc 2603 contract opened at 24,560 yuan/mt. At the start of the session, bulls increased their positions, pushing SHFE zinc up to a high of 24,855 yuan/mt. However, with insufficient upward momentum, SHFE zinc fluctuated downward throughout the session, touching a low of 24,435 yuan/mt toward the end, and finally closed up at 24,490 yuan/mt, up 210 yuan/mt or 0.86%. Trading volume decreased to 134,000 lots, while open interest increased by 8,139 lots to 119,000 lots. Overnight, SHFE zinc formed a small bearish candlestick with a long upper shadow. Expectations of a US interest rate cut have reemerged, and macro sentiment remains favorable. Additionally, domestic inventory saw slight destocking. Although consumption has weakened, the fundamentals have limited impact on SHFE zinc, and its price center shifted upward.

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