LME Zinc Fluctuated as US February CPI Came in Line with Expectations

SHANGHAI, Mar 15 (SMM) - Overnight, LME zinc opened at $2,953.5/mt, touching a high and low at $2,956.5/mt and $2,915/mt, and closed down $38/mt or 1.29% at $2,917.5/mt. Trading volume was down to 7,569 lots, and open interest lost 1,261 lots to 186,000 lots. LME zinc inventory decreased by 250 mt to 37,900 mt, a drop of 0.66%. Since US CPI for February came in line with expectations and fell from the previous print, LME zinc remained volatile.

The most-traded SHFE 2304 zinc contract opened higher at 22,960 yuan/mt and closed at 22,825 yuan/mt overnight, down 60 yuan/mt or 0.26%. Trading volume was down to 52,859 lots, and open interest fell by 593 lots to 82,104 lots. Basically, domestic refined zinc output is expected to reach about 560,000 mt in March, when downstream demand is performing well with operating rates of galvanising plants hovering at a high level of 75%. Given the relatively balanced supply and demand, SHEF zinc is likely to remain rangebound without major changes on the macro front.