SMM December 16 News:
The most-traded SHFE zinc 2601 contract opened at 23,200 yuan/mt. After opening, bulls reduced their positions, causing the price center to shift downward and testing a low of 22,935 yuan/mt. Toward the session's close, bears reduced their positions, allowing zinc to recover some of its losses, ultimately closing down by 400 yuan/mt, or 1.71%, at 23,030 yuan/mt. Trading volume decreased to 139,000 lots, while open interest fell by 10,109 lots to 73,193 lots. SHFE zinc formed a bearish candlestick, with support provided by the 20-day and 60-day daily average moving averages. Currently, tightening domestic supply fundamentals offer some support to SHFE zinc, but lackluster downstream consumption limits upward momentum. Zinc prices are expected to maintain a fluctuating trend in the short term.
