Continuously falling LME zinc inventories support LME zinc prices at high levels

Overnight, LME zinc prices opened at $2483.5/mt, and closed at $2528/mt, up $46/mt or 1.85%. Trading volume decreased to 7187 lots, and open interest grew 2634 lots to 211,000 lots.

LME inventories fell by 6,200 tons to 132,200 tons, a decrease of 4.48%. LME inventories continued to decline significantly, and with news of production cuts at overseas mines, global mines faced a supply shortage, which provided support for zinc prices.

The most active SHFE 2310 zinc contract prices opened at 21600 yuan/mt and closed at 21765 yuan/mt last evening, up 135 yuan/mt or 0.62%. The trading volume was down to 66174 lots, and open interest increased 1810 lots and stood at 109,000 lots.