SMM January 12:
The most-traded SHFE zinc 2602 contract opened at 24,050 yuan/mt. After opening, SHFE zinc fluctuated rangebound above the daily average line, touched a low of 23,995 yuan/mt during the session, and reached a high of 24,140 yuan/mt near the close, finally settling at 24,125 yuan/mt, up 160 yuan/mt or 0.67%. Trading volume increased to 64,976 lots, while open interest fell by 2,893 lots to 73,033 lots. SHFE zinc recorded a bullish candlestick, supported by the 5-day moving average. Although domestic zinc concentrate TCs remained low, coupled with year-end off-season demand, zinc fundamentals showed no improvement, better macro sentiment and sharp rises in copper, aluminum, and precious metals drove zinc prices higher. SHFE zinc is expected to maintain high levels during the night session.
