SHANGHAI, Feb 14 (SMM) - On the news front, the high rents pushed up US consumer prices in January, but the increase on an annual basis was the smallest since October 2021. China said it supported Iran in safeguarding its legitimate rights and interests and in addressing the Iranian nuclear issue "in a proper manner as soon as possible". OPEC upgraded its forecast for global oil demand growth rate for the first time over the past months citing the potential demand recovery in China.
Overnight, LME zinc opened at $3,111/mt, hitting a low and a high of $3,075/mt and $3,145/mt respectively, and closed at $3,097.5/mt, down $20/mt or 0.64%. Trading volume dropped to 7,800 lots, and open interest fell 395 lots to 199,000 lots. LME zinc inventory decreased by 600 mt or 2.31% to 25,325 mt. The annualised US inflation rate was released at 6.4%, which was basically within expectations. However, the hawkish speeches of Fed officials put pressure on metal prices, and LME zinc thus trended lower.
The most-traded SHFE 2303 zinc contract opened at 23,175 yuan/mt overnight and touched a high of 23,290 yuan/mt before falling and closing at 23,110 yuan/mt, up 55 yuan/mt or 0.24%. Trading volume reduced to 57,597 lots, and open interest gained by 63 lots to 81,584 lots. There is no major change in the fundamentals in the near term. The supply is confirmed to increase, while the demand is still picking up, allowing the accumulation of inventory to slow down. Zinc prices are expected to move sideways.
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