SMM zinc morning comment

Overnight, LME zinc opened at US$2,660.5/ton. During the European trading session, LME zinc fluctuated and moved above the daily moving average. It consolidated around US$2,640/ton and touched a high of US$2,660.5/ton before falling to a low of US$2,586/ton. Prices finally closed down at US$2,612/ton, down US$50/ton, or 1.88%. Trading volume increased by 3,474 lots to 10,400 lots, and open interest decreased by 355 lots to 201,000 lots. LME zinc inventory decreased by 1,600 tons to 223,225 tons, a decrease of 0.71%. The final U.S. Markit manufacturing PMI in December was lower than expected at 47.9 and the market reduced its bets on the Fed's interest rate cuts. The U.S. dollar index moved up rapidly.
Overnight, the most active SHFE 2402 zinc contract opened at 21,555 yuan/ton and reached a low of 21,430 yuan/ton. The contract touched a high of 21,605 yuan/ton, and finally closed up at 21,595 yuan/ton, up 105 yuan/ton, or 0.49%. The trading volume decreased by 25,130 lots to 39,800 lots, and the open interest decreased by 1,532 lots to 84,300 lots. In December 2023, the Caixin China Manufacturing PMI rose slightly to 50.8. Macroeconomic sentiment gave zinc prices a certain support. However, SMM social treasury recorded an increase, and spot transactions remained quiet. Fundamental support was insufficient.