SMM Zinc Morning Comment: SHFE zinc prices edged up

Overnight, LME zinc prices opened at US$2,540/ton. Entering the night trading session, the trend of LME zinc prices moved upward again and touched a high of US$2,590/ton and finally closed at US$2586.5/ton, up US$60.5/ton, or 2.40%. The trading volume increased from 1509 lots to 12142 lots, and the open interest increased by 1479 lots to 220000 lots. LME zinc inventory fell by 2025 tons to 195575 tons, down 1.02%. The initial value of the US Markit manufacturing industry was higher than expected and recorded 50.3.
The most interest-traded SHFE 2403 zinc contract opened at 21360 yuan/mt last evening before rallying to a peak of 21380 yuan/mt. It eventually settled at 21360 yuan/mt, up 250 yuan/mt or 1.18%. Trading volume decreased 75234 to 49185 lots, and open interest gained by 3350 lots to 88690 lots.