Last evening, LME zinc prices opened at $2606/mt and went up to close at $2637.5/mt, up $30.5/mt or 1.17%. Trading volume increased to 12465 lots, and open interest decreased 2010 lots to 202,000 lots. LME zinc inventory dropped by 1100 mt or 1.59% to 68125 mt. The U.S. PPI data in October was weaker than expected, indicating that rising inflation is showing signs of fading. The U.S. retail sales monthly rate in October was stronger than expected but fell for the first time in July. The fall in both data continued to strengthen expectations for the ending of the Federal Reserve's interest rate hikes.
The most active SHFE 2312 zinc contract prices opened at 22010 yuan/mt and gained 25 yuan/mt or 0.11% to settle at 21835 yuan/mt in overnight trading with the high-end of 22040 yuan/mt and the low-end of 21870 yuan/mt. Trading volumes decreased to 56247 lots and open interest fell 463 lots to 88529 lots. The Domestic Bureau of Statistics announced that the year-on-year growth rate of industrial added value above designated size in October rebounded better than expected, and the national economy is improving. However, the strong supply and weak demand weakened the fundamental support for zinc prices.
