SMM Jan. 27:
The most-traded SHFE zinc 2603 contract opened at 24,950 yuan/mt. After opening, bulls reduced positions, and SHFE zinc fluctuated downward to hit a low of 24,710 yuan/mt. Subsequently, bears reduced positions, and SHFE zinc fluctuated upward, finally closing down at 24,950 yuan/mt, down 150 yuan/mt or 0.60%. Trading volume decreased to 109,000 lots, and open interest fell by 4,137 lots to 119,000 lots. SHFE zinc recorded a long-legged doji, with various moving averages providing support below. Domestic end-users are gradually entering the holiday period, and market demand remains relatively subdued. However, with multiple macro disturbances and lingering geopolitical risks, SHFE zinc is expected to continue hovering at highs in the short term.
