Some end-user export orders improve, SHFE zinc is expected to maintain fluctuating trend in the short term [SMM Zinc Futures Brief]

SMM August 26 News:

       The most-traded SHFE zinc 2510 contract opened at 22,310 yuan/mt. At the beginning of the session, as bears reduced their positions, SHFE zinc fluctuated upward to touch a high of 22,395 yuan/mt above the daily average line. Subsequently, with an increase in bearish positions, SHFE zinc declined and reached a low of 22,245 yuan/mt, finally closing at 22,270 yuan/mt, down 125 yuan/mt or 0.56%. Trading volume decreased to 93,174 lots, while open interest increased by 3,459 lots to 109,000 lots. SHFE zinc recorded a bearish candlestick, with the 20- and 40-day moving averages exerting pressure from above and the 60-day moving average providing support below. Although the overall domestic fundamentals remain in a state of strong supply and weak demand, recent export orders for downstream galvanizing and die-casting zinc alloy have shown a slight recovery in consumption. Meanwhile, overseas zinc inventory continues to decline, suggesting that there is still some support at the bottom for SHFE zinc.