SHFE Zinc Rallies During the Day, Expected to Remain High in the Short Term [SMM Zinc Futures Brief Review]

SMM January 13:

       The most-traded SHFE zinc 2602 contract opened at 24,240 yuan/mt. After opening, SHFE zinc maintained a fluctuating trend. During the session, SHFE zinc quickly surged, touched a high of 24,735 yuan/mt, then continuously pulled back below the daily average line. Approaching the close, SHFE zinc probed a low of 24,150 yuan/mt, and finally closed down at 24,235 yuan/mt, down 50 yuan/mt, a decrease of 0.21%. Trading volume increased to 90,239 lots, and open interest decreased by 2,254 lots to 68,022 lots. SHFE zinc recorded a long upper shadow. Boosted by surrounding metals, SHFE zinc showed a strong surge intraday. However, as year-end consumption gradually weakened and TCs showed signs of stopping their decline, fundamentals provided insufficient support for zinc prices. Subsequently, SHFE zinc retreated from highs. It is expected to hover at highs during the night session.