SMM Zinc Morning Comment: SHFE zinc prices fell on market bearishness

Overnight, LME zinc opened at $2947/mt before moving down to a low of $2856/mt. It eventually closed down $33/mt or 1.12% at $2910/mt. The trading volume rose to 13047 lots, to reduce interest decreased by 3216 lots to 240,000 lots. LME zinc inventory dropped by 975 mt or 0.38% to 252750 mt. The macro sentiment is bearish. Affected by the strengthening of the US dollar, non-ferrous metals generally fell. It is expected that LME zinc will fluctuate weakly today.

The most-traded SHFE 2406 zinc contract opened at 23000 yuan/mt overnight and fell to 22915 yuan/mt before rallying to a peak of 23215 yuan/mt. It eventually closed at 23,175 yuan/mt, up 55 yuan/mt or 0.24%. Trading volume reduced to 75383 lots, and open interest decreased by 1640 lots to 85330 lots. SHFE zinc is expected to run weakly.