Downstream Holidays Successively Begin, SHFE Zinc Fluctuates [SMM Zinc Futures Brief Review]

SMM February 4:

      The most-traded SHFE zinc 2603 contract opened at 24,830 yuan/mt. After opening, SHFE zinc fluctuated upward to touch a high of 25,010 yuan/mt, then continuously pulled back from the high, probing a low of 24,735 yuan/mt during the session. Subsequently, SHFE zinc rose again, finally closing up at 24,885 yuan/mt, an increase of 80 yuan/mt, a gain of 0.32%. Trading volume decreased to 102,000 lots, and open interest decreased by 4,527 lots to 79,207 lots. SHFE zinc recorded a bullish candlestick, supported by the 40-day moving average below. As the Chinese New Year holiday approaches, downstream enterprises are successively halting production for the holiday, and downstream demand is gradually weakening. Fundamentals present a mixed picture, and there is no other macro guidance. SHFE zinc is expected to maintain a fluctuating trend.