Europe cuts interest rates, LME zinc prices fell from highs [SMM zinc morning comment]

LME zinc opened at $2518/mt last evening, and hit a high of $2571.5/mt before falling back to a low of $2525/mt, and closed at $2532/mt, up $9/mt or 0.36%. Trading volume was 10102 lots, and open interest increased by 2470 lots to 223,000 lots. LME zinc inventories increased by 2400 Lot 272925 mt, an increase of 0.89%. Affected by the earlier interest rate cut in Europe overnight, the US dollar strengthened and non-ferrous metals pulled back. However, production reductions in overseas mines still support zinc prices.

The most active SHFE 2405 prices opened at 21480 yuan/mt and lost 5 yuan/mt or 0.02% to settle at 21320 yuan/mt in overnight trading with the low-end of 21275 yuan/mt. Trading volumes decreased to 56146 lots and open interest fell 2183 lots to 106,000 lots. Overnight macro sentiment affected the zinc in Shanghai, but the shortage on the supply side and declines in SMM social inventory limited zinc price declines.