Waiting for More Macro Guidance, SHFE Zinc Fluctuates and Pulls Back [SMM Zinc Futures Brief Review]

SMM March 4 News: The most-traded SHFE zinc 2504 contract opened at 23,800 yuan/mt. At the beginning of the session, longs reduced their positions, causing SHFE zinc to fluctuate downward, hitting a low of 23,625 yuan/mt. Later, shorts took profits and exited, leading SHFE zinc to fluctuate upward, with its center shifting to around 23,700 yuan/mt for consolidation. It eventually closed down at 23,680 yuan/mt, a decrease of 50 yuan/mt or 0.21%. Trading volume dropped to 129,000 lots, and open interest decreased by 3,692 lots to 83,993 lots. SHFE zinc recorded a long upper shadow bearish candlestick. From a macro perspective, the Two Sessions are being held, and the market is awaiting the implementation of policy support following the sessions. On the fundamentals, domestic smelters are gradually recovering their profits, with a significantly increased willingness to boost production. In March, domestic refined zinc production rebounded MoM, leading to increasingly ample supply. Downstream consumption demand is also gradually improving. Currently, there is no significant imbalance in the fundamentals, and the market is waiting for more macro guidance. SHFE zinc is expected to fluctuate in the evening session.

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