LME Zinc opened at $2605/mt overnight, with its session low and high at $2567/mt and $2671/mt before closing up 1.75% at $2668/mt. Trading volume rose to 25603 lots, and open interest fell 979 lots to 251,000 lots. LME zinc inventory decreased by 75 mt to 260125 mt. Macro sentiment is relatively bullish, but expectations for a rate cut by the Federal Reserve have weakened, which may pressure LME zinc today. Overnight, the SHFE-traded SHFE 2405 zinc contract opened at 21945 yuan/mt, with high and low at 21980 yuan/mt and 21735 yuan/mt before closing at 21885 yuan/mt, up 160 yuan/mt or 0.74%. The trading volume fell to 62058 lots, and open interest decreased by 1670 lots to 80144 lots. Affected by the macro-optimistic sentiment and the continued tight supply of zinc ore, SHFE zinc prices rose. As inventories increased slightly, it is expected that SHFE zinc will fall back today.



