LME Inventory Slightly Increased, Focus on Subsequent Inventory Performance [SMM Zinc Futures Brief Review]

SMM November 5:

       The most-traded SHFE zinc 2512 contract opened at 22,610 yuan/mt. After opening, bulls reduced their positions, and SHFE zinc fluctuated downward to hit a low of 22,505 yuan/mt. Subsequently, bulls increased their positions, and SHFE zinc rebounded, finally closing down at 22,650 yuan/mt, down 20 yuan/mt or 0.09%. The trading volume decreased to 101,000 lots, and the open interest decreased by 4,446 lots to 112,000 lots. SHFE zinc recorded a bullish candlestick, with the 10-day and 60-day daily average lines forming resistance above it. Currently, the domestic fundamentals remain in an oversupply situation, while LME inventory saw a slight increase. Attention should be paid to the subsequent performance of domestic and overseas social inventories. It is expected that SHFE zinc will still have some support at the bottom in the short term.