Overnight, LME zinc opened at $2336/mt and closed up $38/mt or 1.63% at $2373.5/mt. The trading volume was 6538 lots, and open interest decreased 1667 lots to 203,000 lots. LME zinc prices rose for five consecutive days.
The PMI in the euro zone exceeded expectations in August and recorded 43.7, which was still below the line of prosperity but improved slightly. The market expected a slight improvement. At the same time, the weakening of the US PMI data deepened the market’s expectations that the pace of subsequent interest rate hikes will stop or turn into interest rate cuts. The U.S. dollar index weakened, and short sellers left the market, driving LME zinc to rise.
Last evening, the most active SHFE 2310 zinc contract prices opened at 20250 yuan/mt and closed at 20425 yuan/mt, up 220 yuan/mt or 1.09%. Trading volume stood at 73,000 lots, and open interest gained by 442 lots to 103,000 lots. Overnight, SHFE zinc rose for four days in a row. Under the influence of macro sentiment, the strong influx of long funds drives the market growth, but it is still necessary to pay close attention to the subsequent changes in overseas consumption.
