SMM October 20:
The most-traded SHFE zinc 2511 contract opened at 21,865 yuan/mt. After opening, it briefly rose to a high of 21,935 yuan/mt, then increased selling pressure drove prices down to a low of 21,830 yuan/mt. It finally closed down 5 yuan/mt, or 0.02%, at 21,850 yuan/mt. Trading volume increased to 50,178 lots, and open interest rose by 9,074 lots to 125,000 lots. The contract formed a bearish candlestick, pressured by the 5-day moving average. On Monday, SMM zinc ingot inventory continued to accumulate, with no significant improvement in October peak season demand. The fundamental supply-demand imbalance persists, and zinc prices are expected to remain in the doldrums.
