SMM Oct. 17:
The most-traded SHFE zinc 2511 contract opened at 21,980 yuan/mt. After opening, bulls reduced positions, and SHFE zinc fluctuated downward below the daily average line, hitting a low of 21,800 yuan/mt by the end of the session, down 125 yuan/mt, or 0.57%. Trading volume decreased to 88,687 lots, and open interest fell by 9,853 lots to 77,222 lots. SHFE zinc formed a bearish candlestick, pressured by various moving averages above and supported by the lower Bollinger Band below. From the current fundamentals, TCs declined, but spot cargoes remained ample. Meanwhile, smelter production in October is expected to increase slightly MoM, while consumption showed no significant peak season performance. SHFE zinc is expected to maintain a fluctuating trend in the short term.
