Rumours Of Domestic Smelters Cutting Output Boost Market Sentiment, But SHFE Zinc Still Closes With Losses

SHANGHAI, May 30 (SMM) - The LME was closed for the Spring Bank Holiday.

Overnight, the most-traded SHFE 2307 zinc contract hovered sideways after opening at 19,460 yuan/mt, and closed at 19,400 yuan/mt, down 30 yuan/mt or 0.15%. Trading volume fell to 55,935 lots, and open interest decreased by 1,437 lots to 134,000 lots. SHFE zinc found support at the 5-day moving average. Rumours of domestic smelters cutting output boosted market sentiment. Overseas macro headwinds also eased. However, uncertainty over US interest rate hike will still put pressure on zinc prices.