SMM Jan. 14:
The most-traded SHFE zinc 2602 contract opened at 24,490 yuan/mt. At the beginning of the session, SHFE zinc edged up to touch a high of 24,670 yuan/mt, then fluctuated downward from highs. Approaching the end of the session, it probed a low of 24,370 yuan/mt, and finally closed down at 24,475 yuan/mt, down 15 yuan/mt or 0.06%. Trading volume decreased to 109,000 lots, while open interest increased by 861 lots to 10.9 lots. SHFE zinc recorded a small bearish candlestick, with support from the 5-day daily average moving average below. Expectations for a US Fed interest rate cut in April heated up, and the US dollar index fell first then rose. SHFE zinc surged early in the session before pulling back. On the fundamentals side, weak supply and demand persist, and SHFE zinc is expected to remain at highs in the short term.
