SMM September 16:
The most-traded SHFE zinc 2510 contract opened at 22,330 yuan/mt, then fluctuated downward as bulls reduced positions, hitting a low of 22,245 yuan/mt before closing at 22,255 yuan/mt, down 55 yuan/mt or 0.25%. Trading volume decreased to 96,641 lots, and open interest fell by 7,012 lots to 84,991 lots. SHFE zinc formed a long upper shadow bearish candlestick, suppressed by the 40-day moving average above and supported by the 10/20-day moving averages below. As of today, overseas zinc inventory dropped below 50,000 mt, providing strong support to prices. However, domestic social inventory continued to increase, coupled with no significant improvement in downstream consumption. SHFE zinc is expected to fluctuate in the short term.
