SHFE Zinc Center Moved Lower, Focus on Subsequent Consumption Performance [SMM Zinc Futures Review]

SMM October 14:

       The most-traded SHFE zinc 2511 contract opened at 22,290 yuan/mt. After opening, SHFE zinc immediately touched a high of 22,335 yuan/mt, then fluctuated downward below the daily average line as bulls reduced their positions. During this period, bears reduced their positions in an attempt to push prices higher, but ultimately, the price pulled back below the daily average line. It hit a low of 22,210 yuan/mt towards the end of the session and finally closed down at 22,220 yuan/mt, falling 35 yuan/mt, a decrease of 0.16%. Trading volume decreased to 124,000 lots, and open interest fell by 6,505 lots to 95,194 lots. SHFE zinc recorded a bearish candlestick, with the upper Bollinger Band exerting pressure above and the 5-day daily average line providing support below. On the fundamentals side, SMM expects China's zinc ingot production in October to remain around 620,000 mt. However, current downstream consumption is weaker than the same period last year, with subdued peak season characteristics. SHFE zinc came under pressure and moved lower intraday; follow-up consumption will be monitored.