SMM Morning Comment For Zinc Market On November 7

SHANGHAI, November 7(SMM) –Overnight, according to the Wall Street Journal: Minneapolis Fed President Neel Kashkari does not believe the rate hike cycle is over. Fed Governor Lisa Cook: The recent rise in U.S. long-term bond yields might not be driven by investor expectations of further interest rate hikes. She keeps a close eye on the vulnerabilities of non-bank financial institutions as Fed policy tightens financial conditions. China’s central bank published a column titled "Continuing to Deepen the Market-Based Reform of Interest Rates" to promote the further marketization of deposit and loan interest rates and insist on using reform methods to guide the continued decline of financing costs. China will continue to improve the marketization of mortgage interest rates to better support rigid housing demand and demand for improved housing. LME zinc opened at $2522/mt overnight, and closed at $2567.5/mt, an increase of $52/mt or 2.07%. The trading volume rose to 10776 lots, and open interest decreased by 2185 lots to 198,000 lots. LME zinc inventory decreased by 1850 mt to 76725 mt. Overnight, the most-traded SHFE 2312 zinc contract hovered sideways after opening at 21695 yuan/mt, and closed at 21685 yuan/mt, down 275 yuan/mt or1.28%. The trading volume fell to 72232 lots, and open interest increased by 4572 lots to 89755 lots. The weak U.S. dollar provides upward support for zinc prices. Fears of possible output cuts by zinc smelters in Yunnan due to power rationing also boosted zinc price.