Overnight, LME zinc opened at $2,401.5/mt on Tuesday, and closed down $24.5/mt or 1.02% at $2,382/mt after hitting a low of $2,360/mt. Trading volume decreased to 9,063 lots. Open interests dipped by 3,527 lots to 245,000 lots. LME zinc prices gained supports from the 5-day moving average. Overnight LME zinc stocks dropped by 650 mt to 269,400 mt. The main reason for LME zinc price softness was a renewed interest in possible the Fed’s interest rate hike.
The most-traded SHFE zinc contract opened at a low of 20,140 yuan/mt on Tuesday, and closed down 35 yuan/mt or 0.17% at 20,265 yuan/mt after briefly hitting a low of 20,450 yuan/mt. Trading volume decreased to 39,682 lots. Open interests hiked by 6,914 lots to 103,000 lots. Weak macro market, higher social stocks than previous years added bearishness into SHFE zinc prices. Snowfall weather causing certain obstacles to transportation and production also explained for the price drop.
