Domestic inventory continues to increase, but zinc prices are expected to maintain some support at the bottom [SMM Zinc Futures Brief Review]

SMM September 15:

       The most-traded SHFE zinc 2510 contract opened at 22,315 yuan/mt. In early trading, SHFE zinc fluctuated around the daily average line, reaching a high of 22,365 yuan/mt. Subsequently, bulls reduced their positions, and SHFE zinc fluctuated downward below the daily average line, touching a low of 22,255 yuan/mt. At the end of the session, bears reduced their positions, and SHFE zinc recovered some of its losses, finally closing up at 22,310 yuan/mt, an increase of 5 yuan/mt, or 0.02%. Trading volume decreased to 97,830 lots, and open interest decreased by 5,694 lots to 92,003 lots. SHFE zinc recorded a bearish candlestick, encountering resistance from the 40-day moving average above, while the 5-day and 20-day moving averages provided support below. According to SMM communication, current downstream consumption remains weak. Meanwhile, as of this Monday (September 15), SMM zinc ingot inventory across seven regions continued to increase to 160,600 mt, putting upward pressure on SHFE zinc. At the same time, overseas inventories continued to decrease to around 50,000 mt, still providing support for the bottom of zinc prices.