SMM, September 7: The most-traded SHFE zinc 2610 contract opened at 27,030 yuan/mt. After the open, zinc prices pulled back slightly to a low of 26,900 yuan/mt. Subsequently, increased positions by bulls drove prices up to 27,245 yuan/mt. Then, a tug-of-war between longs and shorts kept zinc prices consolidating above the daily average line. The contract finally closed up at 27,095 yuan/mt, up 90 yuan/mt, or 0.33%. Trading volume increased to 88,217 lots, while open interest fell by 1,423 lots to 157,000 lots. SHFE zinc recorded a bullish candlestick, with all moving averages below providing support. Declining social inventory in China lent some support to zinc prices, while LME prices trended stronger. SHFE zinc is expected to stay high.
