SMM September 17:
The most-traded SHFE zinc 2510 contract opened at 22,270 yuan/mt, then fell as bulls reduced positions, hitting a low of 22,195 yuan/mt. Subsequently, bears cut positions, helping zinc recover its losses and attempt to rise above the daily average line, but it ultimately encountered resistance and pulled back. It finally closed up at 22,280 yuan/mt, gaining 25 yuan/mt, or 0.11%. Trading volume decreased to 96,254 lots, and open interest fell by 6,897 lots to 78,094 lots. SHFE zinc recorded three consecutive days of declines, with resistance from the 40-day moving average above and support from the lower Bollinger Band below. Domestic social inventory remains at a yearly high, and downstream consumption has not improved significantly, keeping SHFE zinc under pressure. However, overseas inventories are at relatively low levels, providing support at the bottom of the price. SHFE zinc is expected to continue its short-term volatile trend, and market participants may focus on the US Fed interest rate cut early tomorrow.
