Overnight, LME zinc prices opened at $2514.5/mt and closed up $24/mt or 0.95% at $2539/mt. The trading volume was 8192 lots, and open interest increased 5924 lots to 223,000 lots. LME zinc inventories decreased by 3,975 tons from 122,000 tons to 118,600 tons. However, after overseas destocking, imported zinc continued to arrive, and the fundamental support for zinc prices was weak.
Last evening, the most active SHFE 2310 zinc contract prices opened at 21835 yuan/mt and closed at 21875 yuan/mt, up 95 yuan/mt or 0.44%. Trading volume stood at 37,000 lots, and open interest decreased by 2108 lots to 93,600 lots. In the spot market, spot goods were sufficient, and sellers sold aggressively, lowering spot premiums rapidly. Although the fundamental support for zinc prices has weakened, the downward channel for zinc prices may be narrow considering the recent downstream demand for replenishment before the holiday.