LME Zinc Fell with Gloomy Macro Front

SHANGHAI, Mar 13 (SMM) - Last Friday, LME zinc opened at $2,974/mt and closed at $2,909/mt, down $66.5/mt or 2.23%, with open interest down 3,949 lots to 187,000 lots. The trading volume rose to 8,121 lots. LME zinc inventory decreased by 300 mt to 38,450 mt, down 1.24%. An economic recession loomed large in the overseas market, and the market players became increasingly panic, which may cause LME zinc to weaken.

The most-traded SHFE 2304 zinc contract opened at 22,890 yuan/mt during last Friday’s night session and finished at 22,875 yuan/mt, down 215 yuan/mt or 0.93%. The trading volume was down to 69,235 lots, and open interest lost 217 lots to 84,545 lots. On the fundamentals, the domestic zinc smelters have been running at high capacity, but the demand is still picking up slowly. The SMM zinc ingot social inventory remains low. Market players are suggested to be alert to the macro front overseas.