Zinc Futures Fell Sharply amid the Fall of Non-ferrous Metals

SHANGHAI, May 24(SMM) - The most-traded SHFE zinc contract ended 235 yuan/mt or 0.92% lower at 25,290 yuan/mt after opened at 25,525 yuan/mt and fell when the shorts increased positions. The open interest increased by 8,347 lots to 92,000 lots. Zinc futures moved rangebound within narrow fluctuations in the first half of trading. However, non-ferrous metal prices fell in the second half of trading. With thin spot transactions and high social inventory, zinc prices were dragged down by weak consumption with a sharp fall. Recently, LME zinc fluctuated widely and SHFE/LME zinc price ratio rebounded to 6.8, but the import window of ore still opens. In forward looking, the zinc prices are expected to fall again after the tight supply on the mine end is eased. The market shall focus on the support of the cost end.