Overnight, LME zinc opened at $2,485/mt, and hit a low of $2,471/mt after hitting a high of $2,506/mt, but finally closed up $8.5/mt or 0.34% at $2,491/mt. Trading volume decreased to 8,612 lots. Open interest hiked by 1,103 lots to 231,000 lots. Overnight LME zinc stocks slid 2,725 mt or 0.1% to 269,375 mt. Constantly negative news about overseas mines kept tightening supply, pushing up zinc prices. Moreover, the weakening of the US dollar index slowed down falling LME zinc prices.
The most-traded SHFE 2405 zinc contract opened at 21,140 yuan/mt overnight, and increased to a high of 21,270 yuan/mt after a low of 21,095 yuan/mt, and finally closed up 30 yuan/mt or 0.14% at 21,240 yuan/mt. Trading volume decreased to 39,400 lots. Open interests dropped by 754 lots to 99,731 lots. SHFE zinc moved up yesterday and gained supports at the 40-day moving average. TCs for domestic and imported zinc will decrease in April, unveiling lingering supply tightness at mines. Zinc ingot demand hiked to a limited extent.
