Zinc Price Center Shifted Up Significantly, but Bottom Support Was Insufficient [SMM Zinc Futures Brief Review]

SMM Jan. 5:

       The most-traded SHFE zinc 2602 contract opened higher with a gap at 23,435 yuan/mt. At the beginning of the session, bulls increased their positions, pushing SHFE zinc to rise quickly above the daily average and hit a high of 23,930 yuan/mt. Subsequently, bulls reduced positions and exited the market, causing zinc prices to drop back slightly. It finally closed up at 23,820 yuan/mt, an increase of 545 yuan/mt or 2.34%. The trading volume decreased to 141,000 lots, and the open interest increased by 3,363 lots to 89,942 lots. SHFE zinc recorded a large bullish candlestick, supported by various moving averages below. Driven by the rise in LME zinc, the price center of SHFE zinc showed a significant upward shift today. However, from the perspective of domestic fundamentals, mine TC held steady, zinc ingot production is expected to increase, while downstream consumption demand showed mediocre performance. Currently, actual support is limited, and the bottom support for SHFE zinc is insufficient.