SMM December 29:
The most-traded SHFE zinc 2602 contract opened at 23,160 yuan/mt. At the beginning of the session, bears reduced their positions, and SHFE zinc fluctuated upward, hitting a high of 23,470 yuan/mt, then retreated after a rapid rise, finally closing up at 23,255 yuan/mt, up 85 yuan/mt, an increase of 0.37%. Trading volume increased to 243,000 lots, while open interest fell by 3,738 lots to 936.87 million lots. SHFE zinc recorded a bullish candlestick with a long upper shadow. Fundamentally, domestic inventory continued destocking, and smelting profits remained under pressure with expectations for production cuts. The rise in copper and precious metals drove SHFE zinc higher, but environmental protection measures in the north affected operations, and demand pulled back. SHFE zinc is expected to fluctuate during the night session.
