Market concerns over demand persisted, SHFE zinc remained in the doldrums [SMM Zinc Morning Comment]

SMM April 21 News:

Last Friday, LME zinc was closed due to the Easter holiday.

Last Friday, the most-traded SHFE zinc 2506 contract opened at 22,100 yuan/mt. After the opening, shorts increased their positions, pushing SHFE zinc down to a low of 21,935 yuan/mt before it rebounded, reaching a high of 22,255 yuan/mt during the day. Subsequently, SHFE zinc maintained a fluctuating trend around 22,200 yuan/mt, eventually closing up at 22,230 yuan/mt, an increase of 180 yuan/mt or 0.82%. The trading volume rose to 85,377 lots, while the open interest decreased by 2,988 lots to 126,000 lots. SHFE zinc recorded a bullish candlestick, with the middle line of the Bollinger Bands forming resistance. Continued destocking of zinc ingots supported zinc prices during the week, but macro factors continued to weigh on prices. Concerns about downstream demand persist, and SHFE zinc may remain in the doldrums.