Supply Side Still Supported, SHFE Zinc Rebounds in Night Session [SMM Zinc Morning Comment Nov 15]

Powell: The US Fed does not need to rush to cut interest rates; Iranian Army Commander: Response to Israel will be "devastating"; US Republicans win control of the House of Representatives; China issues $2 billion sovereign bonds in Saudi Arabia for the first time; Head of 6G Promotion Group: 6G technology standard research will start in June next year; Precious metal prices continue to be volatile.

Overnight, LME zinc opened at $2,965/mt, initially reaching a high of $2,970/mt. After the opening, it fell all the way to a low of $2,867.5/mt, then rebounded from the low, almost recovering the previous losses. At the end of the session, LME zinc slightly declined, closing down at $2,933/mt, a decrease of $37.5/mt or 1.26%. Trading volume increased to 14,232 lots, and open interest rose by 3,067 lots to 250,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 60-day moving average forming resistance. LME zinc inventory decreased by 1,225 mt to 242,000 mt, a drop of 0.5%. The US dollar index rose first and then fell. During the night session, the resistance on zinc prices weakened, coupled with tight ore supply still supporting zinc prices, leading to a rebound in LME zinc.

Overnight, the most-traded SHFE zinc 2412 contract opened at 24,540 yuan/mt, initially dipping to 24,535 yuan/mt, then fluctuated upward to a high of 24,750 yuan/mt. Subsequently, SHFE zinc fell back from highs to near the daily moving average, maintaining a fluctuating trend, and finally closed up at 24,640 yuan/mt, an increase of 175 yuan/mt or 0.72%. Trading volume decreased to 86,800 lots, and open interest decreased by 1,261 lots to 102,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the lower Bollinger Band providing support. On the fundamentals side, the weak supply and demand pattern remained unchanged, with domestic smelters maintaining low production. Coupled with the influence of overseas market trends, SHFE zinc slightly rebounded in the night session.