Ferrous metals rebound, while SHFE zinc's correction pace slows down [SMM zinc futures brief comment]

SMM News on July 29: The most-traded SHFE zinc 2508 contract opened at 22,665 yuan/mt. In the early trading session, bulls reduced their positions, causing SHFE zinc prices to fluctuate downward and hit bottom at 22,580 yuan/mt. Subsequently, bears reduced their positions, pushing the price center of SHFE zinc up to near the daily average line. The contract eventually closed higher at 22,655 yuan/mt, up 10 yuan/mt or 0.04% from the previous close. Trading volume decreased to 127,000 lots, while open interest fell by 6,845 lots to 118,000 lots. SHFE zinc recorded a small bullish candlestick, indicating optimistic market sentiment. Ferrous metals prices stopped falling and rebounded again, and the pace of zinc price correction slowed down. However, the expectation of a supply surplus remains unchanged, and downstream consumption still shows resilience. It is expected that SHFE zinc will continue to consolidate in a volatile manner.