SMM, August 18:
The most-traded SHFE zinc 2610 contract opened at 25,775 yuan/mt. After briefly rising to 25,800 yuan/mt at the opening, prices came under pressure and moved lower, hitting an intraday low of 25,620 yuan/mt. In the afternoon session, SHFE zinc consolidated at low levels before recovering slightly and finally closed down at 25,705 yuan/mt, a decrease of 65 yuan/mt, or 0.25%. Trading volume increased to 70,589 lots, while open interest rose by 3,955 lots to 152,000 lots. SHFE zinc recorded a bearish candlestick. Fundamentally, the zinc ingot export window remained open, leading to some cargo outflows. However, domestic consumption remained in the seasonal off-season, downstream buyers showed limited willingness to purchase at high prices, and spot transactions saw limited improvement. SHFE zinc traded relatively weak during the session and is expected to remain rangebound at elevated levels in the near term.
