SMM, January 27: The most-traded SHFE zinc 2503 contract opened at 23,515 yuan/mt. After the opening, intense competition unfolded between bulls and bears. SHFE zinc traded below the daily moving average, fluctuating rangebound around 23,520 yuan/mt, with a low of 23,470 yuan/mt during the session. Subsequently, as shorts reduced positions, SHFE zinc fluctuated upward, reaching a high of 23,810 yuan/mt. Later, as longs reduced positions, SHFE zinc pulled back and ultimately closed down at 23,470 yuan/mt, a decrease of 220 yuan/mt or 0.92%. Trading volume increased to 141,000 lots, while open interest decreased by 3,414 lots to 90,690 lots. SHFE zinc recorded a bearish candlestick with no upper shadow. The upper moving averages exerted pressure, while the lower Bollinger Bands provided support. As the domestic market approaches the holiday, as of this Monday (January 27), SMM's zinc ingot inventory across seven regions totaled 70,400 mt, an increase of 11,000 mt compared to January 20 and 7,800 mt compared to January 23, reflecting a rise in domestic inventory. The center of SHFE zinc is expected to fluctuate around the current level in the short term. Continuous attention should be paid to domestic and overseas macroeconomic news and overseas market dynamics.
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