The most-traded zinc contract on the Shanghai Futures Exchange (SHFE) experienced notable fluctuations on June 15, closing at 24,875 yuan per metric ton . After opening at 24,715 yuan per metric ton,the price dipped to the same level early in the session before rising to a peak of 24,930 yuan per metric ton near the end of trading . This marked an increase of 205 yuan,or 0.83%, from previous close.
Trading activity surged,with volumes climbing by 7,651 lots to reach 43,398 lots . Additionally,open interest rose by 1,372 lots, bringing the total to 79,180 lots. bullish candlestick formation indicated positive market sentiment,bolstered by the recent peace agreement between the United States and Iran.
Despite the optimistic market mood, underlying fundamentals remain challenging . zinc market is currently experiencing an off-season for consumption, and China's zinc ingot inventory levels are notably high, which continues to exert downward pressure on prices. Analysts suggest that while SHFE zinc may hover at elevated levels in the short term, gains could be limited.
In a related contract,the SHFE zinc 2606 contract opened at 24,660 yuan per metric ton and closed at 24,815 yuan,reflecting a more substantial increase of 540 yuan,or 2.22%. However, trading volume for this contract fell to 110 lots, and open interest remained stable at 6,000 lots,with a delivery volume of 30,000 metric tons and a settlement price of 24,760 yuan per metric ton.
