Domestic fundamentals have not changed, SHFE zinc moved range-bound [SMM Zinc Morning Comment]

LME zinc prices opened at $2474/mt last evening and closed down $0.5/mt or 0.02% at $2446/mt. Trading volume decreased to 10410 lots, and open interest decreased by 877 lots to 207,000 lots. LME zinc inventory decreased by 1575 mt or 0.77% to 204125 mt. The initial jobless claims in the United States last week hit a new low since the week of September 24, 2022. The labor market remains stable, weakening market expectations for an interest rate cut by the Federal Reserve.

The most active SHFE 2403 zinc opened at 20720 yuan/mt and fell 115 yuan/mt or 0.55% to close at 20740 yuan/mt trading with low level-end of 20665 yuan/mt and the an intraday high of 20765 yuan/mt. Trading volumes decreased to 37657 lots and open interest grew 915 lots to 90610 lots. Downstreams have begun to close one after another, the weak supply and demand situation of zinc ingots has not changed. Overseas macro bearish sentiment has not been fully digested. SHFE zinc maintained rangebound fluctuations.