SMM Morning Comment For Zinc Market On August 22

SHANGHAI, Aug 22 (SMM) –

LME zinc prices closed up $14.5/mt or 0.58% at $2,323.5/mt on Monday. The trading volume stood at 7,706 lots, and open interest dropped 1,926 lots to 205,000 lots. In July, China imported more than 70,000 mt of refined zinc, while large-scale overseas delivery is continuing. As overseas consumption weakens, market players need to be alert to the possibility of a subsequent pullback.

Overnight, the most active SHFE 2310 zinc contract prices closed at 20,010 yuan/mt, up 70 yuan/mt or 0. 35%. Trading volume stood at 53,000 lots, and open interest increased by 5,095 lots to 102,000 lots. The PBOC adjusted interest rates to drive the real estate market, but the market is still wait-and-see about the subsequent consumption performance. The spot zinc price slightly rose but lacks impetus since longs are cautious. Market players need to pay attention to how the futures market will perform after the cooling of the purchasing sentiment.