Zinc Concentrate TCs Rise Significantly, SHFE Zinc Fluctuates Downward [SMM Zinc Morning Comment]

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Last Friday, LME zinc opened at $2,932/mt, initially reaching a high of $2,934/mt before fluctuating downward, hitting a low of $2,880/mt during the night session. It then rebounded near the daily moving average, ultimately closing down at $2,891.5/mt, a decrease of $32.5/mt or 1.11%. Trading volume fell to 12,900 lots, while open interest increased by 410 lots to 221,000 lots. Last Friday, LME zinc formed a bearish candlestick, with the KDJ indicator widening. Although the US dollar index slightly declined on Friday, it remained at a high level, continuing to pressure the performance of base metals. The center of LME zinc prices continued to decline.

Last Friday, the most-traded SHFE zinc 2502 contract opened at 24,495 yuan/mt. After the opening, SHFE zinc slightly declined to 24,420 yuan/mt, then rebounded above the daily moving average and fluctuated, reaching a high of 24,595 yuan/mt. It ultimately closed down at 24,560 yuan/mt, a decrease of 105 yuan/mt or 0.43%. Trading volume fell to 80,504 lots, while open interest decreased by 1,998 lots to 113,000 lots. Last Friday, SHFE zinc formed a bullish candlestick, with the lower Bollinger Band acting as resistance. Domestic zinc concentrate TCs showed a significant MoM increase in January, alleviating the tight supply of zinc ore and weakening support for zinc prices. Coupled with downstream sectors gradually starting holidays and weakening demand, SHFE zinc continued to fluctuate downward.