SHFE Zinc Recorded a Long Upper Shadow Bullish Candle; Downstream Demand Weakly Supports Zinc Prices [SMM Zinc Futures Brief Review]

SMM March 11 News: The most-traded SHFE zinc 2504 contract opened at 23,745 yuan/mt. At the beginning of the session, bears reduced positions, causing SHFE zinc to decline to a low of 23,540 yuan/mt. Subsequently, with further reduction in short positions, SHFE zinc fluctuated upward above the daily average line, reaching a high of 23,850 yuan/mt by the end of the session and closing with a gain at 23,840 yuan/mt, up by 5 yuan/mt or 0.02%. Trading volume decreased to 131,000 lots, and open interest fell by 3,044 lots to 79,502 lots. SHFE zinc recorded a candlestick with a long lower shadow, with resistance from the 60-day moving average above and support from the lower Bollinger Band below. Currently, end-user consumption remains relatively moderate, with demand still in a recovery phase. Coupled with expectations of relatively ample supply, the upward support for zinc prices is weak, and short-term trends are expected to remain range-bound.

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