SMM Zinc Morning Comment: LME zinc prices moved at lows

LME zinc opened at $2530/mt last evening, and hit a low of $2485/mt, and closed at $2501.5/mt, down $27/mt or 1.07%. Trading volume grew to 11285 lots, and open interest decreased by 1103 lots to 228,000 lots. LME zinc inventory increased by 2300 mt to 267200 mt, an increase of 0.87%. The U.S. dollar is strengthening under high inflation and macro sentiment is weak.

The most active SHFE 2405 zinc contract prices opened at 21110 yuan/mt and fell 145 yuan/mt or 0.68% to close at 21135 yuan/mt, with the high-end of 21325 yuan/mt. Trading volumes decreased to 42229 lots and open interest fell increased 1097 lots to 104,000 lots. The recent poor macro sentiment has superimposed on the supply shortage, but the weakness of ferrous metals prices has dragged down downstream consumption.