Overseas Bearish Sentiment Weighed on SHFE Zinc

SHANGHAI, May 6(SMM) - The most-traded SHFE zinc 2206 contract ended 2.45% or 675 yuan/mt lower at 26,860 yuan/mt with open interest reducing by 1,116 lots to 117,000 lots.

In the overseas market, the exported domestic zinc ingots may have been delivered. Inventory in Taiwan, China stood at 1,575 mt, while the inventory of LME rebounded, up 1,200 mt from yesterday. Bearish sentiment in overseas market was strong due to the increased in inventory. In addition, monetary policy tightened globally. Domestic consumption was weak under the poor macro atmosphere. The market bearish sentiment dragged down the market prices.