Fundamentals have not shown significant improvement, and it is expected that SHFE zinc will remain in the doldrums [SMM Zinc Futures Brief]

SMM August 27 News:

       The most-traded SHFE zinc 2510 contract opened at 22,355 yuan/mt. At the beginning of the session, a fierce battle between bulls and bears took place, with the center of SHFE zinc fluctuating around 22,350 yuan/mt. Subsequently, as the bulls reduced their positions, SHFE zinc fell to a low of 22,290 yuan/mt. By the end of the session, it recovered some of its losses and closed up at 22,310 yuan/mt, an increase of 40 yuan/mt or 0.18%. Trading volume increased to 115,000 lots, while open interest decreased by 891 lots to 108,000 lots. SHFE zinc recorded a doji with a long upper shadow, supported by the 60-day moving average below. Currently, the domestic fundamentals still show a clear supply-demand imbalance, with overseas social inventory continuing to decline. However, the US dollar index is continuously falling, and it is expected that SHFE zinc will remain in the doldrums during the evening session.