SMM November 26:
The most-traded SHFE zinc 2601 contract opened at 22,345 yuan/mt. After opening, long and short positions competed, with SHFE zinc fluctuating rangebound around the daily average line. It finally closed down at 22,355 yuan/mt, down 5 yuan/mt, a decrease of 0.02%. Trading volume increased to 96,212 lots, and open interest rose by 1,139 lots to 101,000 lots. SHFE zinc recorded a small bullish candlestick, suppressed by the 10-day moving average above and supported by the lower Bollinger Band below. Currently, prices of recycled raw materials remain high, coupled with relatively tight domestic ore supply, leading to expectations for production cuts by smelters. However, downstream consumption is mediocre, providing insufficient price support, and SHFE zinc is expected to maintain a fluctuating trend.
