SMM December 1:
The most-traded SHFE zinc 2601 contract opened at 22,475 yuan/mt. At the beginning of the session, it dipped to 22,470 yuan/mt, then fluctuated higher above the daily average line. Approaching the close, it touched a high of 22,620 yuan/mt, finally settling at 22,590 yuan/mt, up 120 yuan/mt, or 0.53%. Trading volume increased to 85,188 lots, and open interest rose by 3,416 lots to 106,000 lots. SHFE zinc formed a long bullish candlestick, supported by the 60-day moving average. Due to continued declines in TCs, SMM expects refined zinc production to drop MoM in December. Combined with continued destocking of domestic zinc ingot social inventory, supply-side factors strongly support zinc prices. During the day, SHFE zinc held up well, and it is expected that zinc prices will remain high during the night session.
