SMM October 21:
The most-traded SHFE zinc 2511 contract opened at 21,955 yuan/mt. After opening, it fluctuated above the daily average line, touched a low of 21,930 yuan/mt near the early session, then climbed to a high of 22,045 yuan/mt, before dropping back slightly and finally closing up at 21,970 yuan/mt, up 10 yuan/mt or 0.05%. The trading volume increased to 64,055 lots, and open interest rose by 2,685 lots to 130,000 lots. SHFE zinc formed a bullish candlestick, with the middle Bollinger Band forming resistance overhead. LME zinc inventory remained at low levels, and the backwardation structure rose again above $200/dmt. Supported by low inventory, LME zinc prices continued to rise, driving a slight rebound in domestic SHFE zinc. However, limited by fundamentals, the rebound in SHFE zinc was relatively constrained.
