The Center of Daily Candlestick Continued to Decline, Focus on Tonight's PCE Data [SMM Zinc Futures Brief]

SMM August 29:

       The most-traded SHFE zinc 2510 contract opened at 22,130 yuan/mt. After opening, bears increased positions, causing SHFE zinc to fluctuate downward below the daily average line. Subsequently, bears reduced positions, and SHFE zinc continuously rose to touch a high of 22,180 yuan/mt. Toward the session close, SHFE zinc pulled back slightly, finally closing down at 22,140 yuan/mt, a decline of 30 yuan/mt (0.14%). Trading volume decreased to 140,000 lots, while open interest increased by 1,964 lots to 117,000 lots. SHFE zinc formed a long lower-shadow bearish candlestick, with various moving averages exerting pressure above. The market continues to await tonight's PCE data results. Meanwhile, overseas inventories kept declining, and LME prices continued to rise, suggesting a possibility of SHFE zinc opening higher with a gap tonight. However, domestic fundamentals remain characterized by strong supply and weak demand, and prices are expected to fluctuate in the short term. Attention should be paid to tonight's macro data and consumption trends.