SMM Morning Comment For Zinc Market On January 23

SHANGHAI, January 23 (SMM) –
Overnight, the People's Bank of China kept the one-year and five-year loan prime rates (LPR) unchanged at 3.45% and 4.20% respectively; the General Office of the CPC Central Committee and the General Office of the State Council: Improve institutional arrangements for the listing and financing of technology companies in the capital market; Bank of Japan will revise CPI expectations for fiscal year 2025. LME zinc opened at $2470.5/mt overnight, with session high of $2474/mt and low of $2445.5/mt, closing down 0.77% at $2454mt. Trading volume fell 2074 lots to 7843 lots, and open interest fell 3519 lots to 193,000 lots, LME zinc inventory fell by 2925 mt to 199125 mt, a drop of 1.08%. The negative overseas news has not been fully digested, the U.S. dollar index has risen, pressuring on LME zinc. Overnight, the most-traded SHFE 2403 zinc contract opened at 20685 yuan/mt, with low at 20675 yuan/mt and high at 20800 yuan/mt before closing at 20760 yuan/mt, up 10 yuan/mt or 0.05%, Trading volume fell 53002 lots to 31548 lots, and open interest fell 388 lots to 89278 lots, Domestic zinc concentrate TCs fell, hurting smelter margins. The cost side offered support to SHFE zinc price.