SMM Jan. 8:
The most-traded SHFE zinc 2602 contract opened at 24,075 yuan/mt. After opening, bulls reduced their positions, and SHFE zinc fluctuated downward below the daily average line, hitting a low of 23,845 yuan/mt. Toward the end of the session, bears reduced their positions, allowing SHFE zinc to recover some losses. It finally closed down 355 yuan/mt or 1.46% at 23,975 yuan/mt. Trading volume decreased to 152,000 lots, and open interest fell by 7,817 lots to 83,786 lots. After three consecutive days of gains, SHFE zinc turned lower today, forming a bearish candlestick, with support from the 10-day and 60-day moving averages. According to SMM, domestic social inventory increased as of today. Downstream enterprises showed weak purchasing demand due to high prices. With fundamentals pointing to increasing supply and weakening demand, zinc prices faced some resistance.
