Zinc Futures Prices Fell As Bulls Reduced Positions

Overnight, the U.S. Department of Commerce announced that gross domestic product (GDP) grew at an annual rate of 2.4% in the second quarter, up from 2.0% in the first quarter. The European Central Bank raised interest rates for the ninth time in a row, but the chances of a pause in rate hikes at the next policy meeting have risen.

Overnight, LME zinc prices closed down $16/mt or 0.65% at $2,454/mt. The trading volume was 10,394 lots, and open interest lost 1,920 lots to 198,000 lots. Last Friday, LME zinc continued to weaken, and the market's expectations for subsequent interest rate cuts have weakened.

Overnight, the most active SHFE 2309 zinc contract prices closed at 20,590 yuan/mt, down 145 yuan/mt or 0.7%. Trading volume stood at 66,000 lots, and open interest decreased by 3,600 lots to 122,000 lots.  Spot trading is getting weaker amid market pessimism. It is expected that there may be different degrees of stock accumulation in various places this week. The support from fundamentals for the zinc price is still weakening.

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