LME zinc prices closed down $47/mt or 1.96% at $2,351/mt yesterday evening. The trading volume increased to 9,767 lots, and open interest increased 501 lots to 209,000 lots. LME zinc inventories increased by 375 mt to 92,175 mt, an increase of 0.41%. Overnight, the Fed's hawkish remarks bolstered the US dollar and that put pressure on LME zinc prices.

The most active SHFE 2309 zinc contract prices lost 140 yuan/mt or 0.68% to settle at 20,305 yuan/mt in overnight trading. Trading volumes decreased to 56,948 lots and open interest fell 667 lots to 91747 lots. Domestic macro sentiment has not yet improved, and a series of poor data has made the market worried about the economic outlook. At the same time, domestic smelters still maintain a relatively high output of 550,000 mt, while SMM social inventory has dropped by 0.07 million mt again, indicating that consumption is still showing resilience. It is not recommended to increase short positions excessively.