SMM December 9:
The most-traded SHFE zinc 2601 contract opened at 23,185 yuan/mt. At the beginning of the session, bulls reduced their positions, and SHFE zinc fluctuated downward throughout the session, hitting a low of 23,005 yuan/mt toward the end. It finally closed down at 23,070 yuan/mt, down 215 yuan/mt or 0.92%. Trading volume fell to 130,000 lots, and open interest increased by 7,412 lots to 101,000 lots. SHFE zinc recorded a large bearish candlestick. According to SMM communication, as of this Monday (December 8), the total zinc ingot inventory across seven SMM-tracked locations stood at 136,000 mt, down 8,200 mt from December 1 and down 4,300 mt from December 4, indicating a decrease in domestic inventory. Macro side, domestic policies fell short of expectations, and the market awaited the US Fed's interest rate cut decision. Supply side, zinc ore remained relatively tight, and fundamental support persisted. SHFE zinc is expected to fluctuate mainly during the night session.
