SHFE Zinc Bottom Still Has Strong Support, Records a Large Bullish Candlestick [SMM Zinc Futures Brief]

SMM August 25 News:

       The most-traded SHFE zinc 2510 contract opened at 22,400 yuan/mt, and the center of SHFE zinc fluctuated rangebound around 22,380 yuan/mt. It finally closed up at 22,395 yuan/mt, an increase of 120 yuan/mt or 0.54%. Trading volume increased to 131,000 mt, while open interest decreased by 2,533 lots to 105,000 lots. Today, SHFE zinc recorded a large bullish candlestick, with the middle Bollinger Band providing resistance above and the 60-day moving average offering support below. According to SMM's communication and understanding, as of this Monday (August 25), the total inventory of zinc ingots in seven locations was 138,500 mt, an increase of 3,100 mt from August 18 and 5,600 mt from August 21, indicating an increase in domestic inventory. The current domestic fundamentals still show a strong supply and weak demand pattern. Domestic supply capacity continues to be released, but there has been no significant improvement in demand. However, due to low overseas inventories and expectations of an interest rate cut, the bottom of SHFE zinc remains supported. It is expected that SHFE zinc will mainly fluctuate in the short term.