Consumption Recovery Still Requires Time; SHFE Zinc to Fluctuate in the Short Term [SMM Zinc Futures Brief Review]

SMM, February 21: The most-traded SHFE zinc 2503 contract opened at 24,055 yuan/mt. At the beginning of the session, shorts reduced positions, pushing SHFE zinc upward to a high of 24,210 yuan/mt. Subsequently, longs reduced positions, causing SHFE zinc to decline below the daily moving average, hitting a low of 23,935 yuan/mt, and finally closing down at 23,980 yuan/mt, a decrease of 165 yuan/mt or 0.68%. Trading volume increased to 96,802 lots, while open interest decreased by 12,988 lots to 49,424 lots. SHFE zinc recorded a bearish candlestick, with resistance formed by the 40-day and 60-day moving averages above, and support provided by the 10-day and 20-day moving averages below. Currently, the domestic macro front is releasing positive signals, slightly lifting the center of SHFE zinc. However, downstream consumption is still recovering, while concerns remain over the US "tariff crackdown." The market is also expected to focus on the upcoming Two Sessions. In the short term, SHFE zinc is expected to remain range-bound, with attention on the strength of downstream recovery and macro developments.

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