SMM November 3:
The most-traded SHFE zinc 2512 contract opened at 22,460 yuan/mt. After opening, bears reduced positions, and SHFE zinc fluctuated downward below the daily average line. It hit a low of 22,400 yuan/mt toward the close and finally settled at 22,565 yuan/mt, up 210 yuan/mt or 0.94%. The trading volume increased to 141,000 lots, and open interest rose by 2,530 lots to 119,000 lots. SHFE zinc formed a bullish candlestick, supported by the 10-day and 60-day daily average lines below. According to SMM data, the domestic social inventory increased slightly to 161,700 mt as of today. Domestic zinc ingot supply remained loose, but expectations of recent zinc ingot exports and subsequent smelter production declines still provided some support for SHFE zinc. Market participants will focus on actual export volumes and inventory changes.
