Domestic Inventory Decline Still Provides Some Support for High Zinc Prices [SMM Zinc Futures Brief]

SMM reported on December 30: The most-traded SHFE zinc 2502 contract opened at 25,310 yuan/mt. At the beginning of the session, SHFE zinc fluctuated around the daily moving average, dipping to a low of 25,145 yuan/mt. Subsequently, with bulls increasing their positions, SHFE zinc fluctuated upward above the daily moving average, reaching a high of 25,410 yuan/mt. It then dropped back slightly, but short covering helped SHFE zinc recover part of the losses. Toward the end of the session, bulls reduced their positions and exited, causing SHFE zinc to decline, ultimately closing higher at 25,325 yuan/mt, up 150 yuan/mt or 0.60%. Trading volume decreased to 142,000 lots, and open interest fell by 3,558 lots to 140,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with support provided by the 40-day moving average. According to an SMM survey, as of this Monday (December 30), the total zinc ingot inventory across SMM's seven surveyed regions stood at 62,500 mt, down by 7,600 mt compared to December 23 and by 2,700 mt compared to December 26. The reduction in domestic inventory continues to provide some support for zinc prices to fluctuate at highs.

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