Long Funds Remain in the Market, SHFE Zinc Fluctuates and Consolidates [SMM Zinc Morning Comment Dec 5]

Overnight, Fed Chairman Powell stated that he does not see any possibility of a "shadow Fed Chairman"; the French parliament voted to pass a no-confidence motion against the government, leading to the resignation of the Prime Minister; South Korea's opposition party formally proposed a motion to impeach President Yoon Suk-yeol; ECB President Lagarde said there was no pre-commitment to a specific rate path and that rates would continue to be lowered; Trump chose crypto-friendly Paul Atkins as SEC Chairman; the application for Chinese New Year to be listed as a UNESCO intangible cultural heritage was successful; the new round of oil price adjustments was halted, with no changes to oil prices this round; Japanese media reported that Japan might relax visa requirements for Chinese citizens.

Overnight, LME zinc opened at $3,095/mt, fluctuated and consolidated along the daily moving average after the opening, and during European trading hours, long positions increased, causing LME zinc to fluctuate upward and reach a high of $3,112/mt. However, the upward momentum was insufficient, and LME zinc quickly fell to a low of $3,070/mt, ultimately closing down at $3,085/mt, a decrease of $14/mt or 0.45%. Trading volume decreased to 9,433 lots, and open interest increased by 231 lots to 243,000 lots. Overnight, LME zinc recorded a small bearish candlestick, with LME inventory increasing by 100 mt to 278,100 mt, an increase of 0.04%. Despite the continuous inventory buildup, long funds remained in the market, and LME zinc mainly experienced slight fluctuations and adjustments. It is expected to fluctuate mainly today.

Overnight, the most-traded SHFE zinc 2501 contract opened at 25,385 yuan/mt. At the beginning of the session, SHFE zinc quickly fell to 25,270 yuan/mt, then long positions increased, causing SHFE zinc to fluctuate upward and reach a high of 25,480 yuan/mt. However, the upward momentum was insufficient, and it fell back to near the daily moving average, ultimately closing down at 25,360 yuan/mt, a decrease of 105 yuan/mt or 0.41%. Trading volume decreased to 72,685 lots, and open interest decreased by 1,296 lots to 130,000 lots. Overnight, SHFE zinc recorded a small bearish candlestick, with the 10-day moving average below providing support. Although there are concerns about consumption consumption, SHFE zinc still has support below, with the center slightly shifting downward. It is expected to fluctuate mainly today.