Bull funds drove up zinc prices, with SHFE zinc reaching a near one-year high [SMM Zinc Futures Review]

SMM Jan. 15:

       The most-traded SHFE zinc 2603 contract opened at 24,855 yuan/mt, initially probed lows at 24,780 yuan/mt, then fluctuated upward all the way, touched highs at 25,645 yuan/mt before quickly pulling back near the daily average line, and finally closed up at 25,090 yuan/mt, up 295 yuan/mt or 1.19%. Trading volume increased by 152,000 lots to 327,000 lots, and open interest increased by 13,379 lots to 143,000 lots. SHFE zinc recorded a long upper shadow bullish candlestick, with the 5-day moving average providing support below. Funds flowed significantly into the zinc sector, and bulls increased their positions noticeably. Zinc prices rose significantly during the day, reaching near one-year highs, but considering the weak supply-demand fundamentals, SHFE zinc pulled back from highs during the session. Zinc prices are expected to continue fluctuating at highs during the night session.

       During the day, the SHFE zinc 2601 contract opened at 23,990 yuan/mt, rose rapidly after opening, and finally closed up at 25,050 yuan/mt, up 600 yuan/mt or 2.45%. Trading volume increased to 145 lots, open interest decreased by 65 lots to 1,740 lots, delivery volume was 8,700 mt, and the settlement price was 24,689 yuan/mt.