Zinc contract prices rose amid weakening US dollar index

Overnight, LME zinc opened at $2555.5/mt and closed down $32.5/mt or 1.27% at $2527.5/mt. The trading volume was 6581 lots, and open interest lost 614 lots to 203,000 lots. Although it is difficult for LME zinc to rise against the background of large-scale overseas positions; however, macro data reflects a recession. The downside space for LME zinc is narrow due to the weakening of the US dollar.
Overnight, the most-traded SHFE 2401 zinc contract opened at 21210 yuan/mt and closed at 21150 yuan/mt, up 35 yuan/mt or 0.17%. Trading volume stood at 45,000 lots, and open interest gained by 1271 lots to 85,000 lots. Recently, the SHFE/LME price ratio has been gradually declining, the overseas ore import window has tended to close. Smelters have tended to buy domestic ore, and domestic TCs have continued to fall. The reduction in TCs has given zinc prices a certain cost-end support, and it is difficult for zinc futures to rise sharply.