Domestic inventory slightly decreased, SHFE zinc expected to remain in the doldrums [SMM Zinc Futures Brief Review]

SMM September 18:

       The most-traded SHFE zinc 2510 contract opened at 22,080 yuan/mt. After opening, it immediately dipped to a low of 21,950 yuan/mt, then fluctuated rangebound around 22,050 yuan/mt amid a tug-of-war between longs and shorts. It finally closed down at 22,035 yuan/mt, falling 245 yuan/mt or 1.10%. Trading volume increased to 120,000 lots, while open interest decreased by 6,337 lots to 71,757 lots. Overnight, SHFE zinc formed a bearish candlestick, with various moving averages exerting pressure above. According to SMM data, as of today, domestic inventory decreased by 2,100 mt to 158,500 mt. Meanwhile, downstream consumption remained mediocre, with demand from various end-user sectors relatively weak. SHFE zinc is expected to remain in the doldrums tonight. Attention can be paid to the US initial jobless claims data for the week, which is about to be released.