SHANGHAI, May 25 (SMM) - LME zinc moved around the daily moving average after opening at $2,350/mt on Wednesday, closing at $2,295/mt, down $59/mt or 2.51%. Trading volume added 68 lots to 9,346 lots, and open interest rose 1,947 lots to 188,000 lots. LME zinc met resistance at the 5-day moving average. LME zinc inventories fell further. The US index hovered at a two-month high. Overseas consumption has weakened, and the market has pessimistic expectations for demand.
Overnight, the most-traded SHFE 2307 zinc contract opened at 19,475 yuan/mt. The contract went down before closing at 19,175 yuan/mt, down 290 yuan/mt or 1.49%. Trading volume fell 67,070 lots to 120,000 lots, and open interest rose 3,610 lots to 143,000 lots. SHFE zinc touched a nearly two-year low of 19,140 yuan/mt. The overall macro atmosphere is bearish, and non-ferrous metals mostly fell. Given growing supply, poor consumption and risk aversion, SHFE zinc will have little upside room in the short term.
