The fundamental situation remains unchanged, SHFE zinc weakened in the night session [SMM Zinc Morning Comment]

SMM January 22 News:

Overnight, LME zinc opened at $3,179.5/mt, and after the opening, it fluctuated upward, reaching a high of $3,211/mt during the session. It then pulled back from the high, touching a low of $3,164/mt near the close, and finally closed flat at $3,175/mt. Trading volume decreased to 10,031 lots, and open interest fell by 2,551 lots to 229,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 10-day moving average forming resistance above. Trump stated that a framework for a future agreement on Greenland has been formed, and the US dollar index rebounded from its lows, putting pressure on zinc prices. The center of LME zinc shifted downward, and it is expected to maintain a fluctuating trend in the short term.

Overnight, the most-traded SHFE zinc 2603 contract opened at 24,350 yuan/mt, initially reaching a high of 24,485 yuan/mt, and then fluctuated downward, touching a low of 24,275 yuan/mt near the close, and finally closed down at 24,300 yuan/mt, a decrease of 50 yuan/mt or 0.21%. Trading volume decreased to 68,738 lots, and open interest fell by 1,699 lots to 120,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the 10-day moving average forming resistance above. Recently, some domestic zinc downstream consumers have started their holidays, leading to weakening consumption, while supply-side pressures are limited. The fundamentals provide insufficient support for zinc prices, and influenced by the external market, SHFE zinc declined during the night session.

Data Source Statement: Apart from publicly available information, other data is derived from public information, market communication, and SMM's internal database model, processed by SMM for reference only and does not constitute decision-making advice.