SMM October 15:
The most-traded SHFE zinc 2511 contract opened at 22,020 yuan/mt. After opening, long and short positions competed, with the price center fluctuating rangebound around the daily average line, within a range of 90 yuan/mt. It finally closed down at 22,015 yuan/mt, falling 205 yuan/mt or 0.92%. Trading volume decreased to 121,000 lots, and open interest fell by 5,282 lots to 89,912 lots. SHFE zinc recorded a four-day losing streak, with the upper Bollinger Band midline providing resistance and the lower band offering support. Domestically, smelter production is expected to continue increasing in October, coupled with high current social inventory, indicating a relatively loose supply side. Downstream consumption lacks highlights, and subsequent focus should be on the marginal changes in zinc ingot export momentum and domestic end-use consumption.
