SMM reported on July 16:
The most-traded SHFE zinc 2508 contract opened at 22,030 yuan/mt. After the opening, both bulls and bears engaged in intense competition, with SHFE zinc maintaining a fluctuating trend. It eventually closed lower at 22,045 yuan/mt, down 40 yuan/mt or 0.18%. Trading volume decreased to 89,469 lots, while open interest fell by 5,993 lots to 78,311 lots. SHFE zinc recorded a long lower shadow bullish candlestick, with the 60-day moving average acting as resistance above and the lower Bollinger Band providing support below. According to Vdanta's Q2 report, the quarterly zinc concentrates output increased by 7% YoY, indicating relatively ample overseas supply. Meanwhile, the market expects domestic supply to remain relatively loose. However, under these circumstances, domestic consumption has entered the off-season, which is expected to provide insufficient support for zinc prices. Attention can be paid to the US PPI data in the evening.
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