Stronger US dollar weighed on LME zinc prices

Overnight, LME zinc prices opened at US$2518/mt and dropped to a low of US$2472.5/mt, and finally closed down at US$2493/mt, down US$19.5/mt, a decrease of 0.78%. The trading volume reached 10285 lots, and the open interest reached 224,000 lots. LME zinc inventories decreased 450 mt to 107075 mt, a drop of 0.42%. U.S. durable goods orders in August exceeded expectations by 0.2%. The U.S. dollar index strengthened again, and non-ferrous metals were under pressure.

Overnight, the most active SHFE 2311 zinc contract prices opened at 21520 yuan/mt. At the beginning of the trading, short positions were reduced. It finally closed down at 21,435 yuan/mt, down 155 yuan/mt, or 0.72%. The trading volume reached 68,900 lots, and the open interest reached 116,000 lots. SHFE zinc prices will move at lows as investors are cautious ahead of holidays.