SHFE zinc fell amid the bearish sentiment in the overseas market [SMM Zinc Morning Comment]

LME zinc opened at $2555/mt yesterday evening, and hit a high of $2567/mt before falling back to $2531/mt, and closed at $2553/mt, a decrease of $2/mt or 0.08%. The trading volume decreased to 6671 lots, and open interest fell 2975 lots to 210,000 lots. LME zinc inventory decreased by 1900 mt or 0.91% to 207300 mt. Federal Reserve Board Governor Waller said that interest rate cuts should be carried out in a cautious and orderly manner, downplaying expectations of rapid interest rate cuts.

The most active SHFE 2403 zinc and then due to the growth opened at 21205 yuan/mt and fell 100 yuan/mt or 0.47% to close at 21200 yuan/mt trading with the high-end of 21300 yuan/mt and the low-end of 21170 yuan/mt. Trading volumes decreased to 38839 lots and open interest grew 2569 lots to 79744 lots. Recently, the import window for zinc ingots has been closed again. However, demand has also weakened due to the successive closures in the downstream. Under the weak supply and demand, SHFE zinc has declined. However, supported by low domestic inventories, there is not much room for price declines.