Joint Statement of China-U.S. Talks Released, SHFE Zinc's Center Moved Upward [SMM Zinc Futures Brief Commentary]

SMM, May 12:

       The most-traded SHFE zinc 2506 contract opened at 22,365 yuan/mt. In the early session, bears increased their positions, causing SHFE zinc to fluctuate downward below the daily moving average, dipping to a low of 22,080 yuan/mt. Subsequently, as bears reduced their positions, SHFE zinc rose steadily above the daily moving average, reaching a high of 22,515 yuan/mt. It eventually closed up at 22,490 yuan/mt, up 300 yuan/mt or 1.35%. Trading volume increased to 230,000 lots, while open interest decreased by 1,140 lots to 118,000 lots. SHFE zinc recorded a long lower shadow bullish candlestick, with the 40/60-day moving averages acting as resistance above and the lower Bollinger Band providing support below. Substantial progress was made in tariff negotiations between China and the US, boosting market confidence and driving SHFE zinc higher. Meanwhile, according to SMM data, domestic social inventory increased slightly, with imports arriving in some regions. It is expected that SHFE zinc will fluctuate mainly in the short term.

》Subscribe to view SMM metal spot historical prices