SMM zinc morning comment: LME zinc prices were stronger than SHFE zinc prices

Last evening, LME zinc prices opened at $2411.5/mt and closed at $2423.5/mt with a low-end of $2404/mt and a high-end of $2439/mt, up $7.5/mt or 0.31%. The trading volume decreased to 9227 lots, and the open interest fell 3073 to 239,000 lots. LME zinc inventories increased 8050 mt to 276100 mt, a gain of 3.0%. Initial jobless claims in the United States for the week was higher than the expected value of 21 and the previous value of 20.2, recording 21.5. The labor market performance is weak, and interest rate cuts issues are still the focus of the market. Fed official Daly said that cutting interest rates too fast may lead to inflation backlash, and the macro sentiment is bearish.

Overnight, SHFE 2404 zinc contract opened at 20560 yuan/ton, and finally closed at 20585 yuan/ton, up 40 yuan/ton or 0.19%. Trading volume was reduced to 33879 lots, and the open interest increased by 1176 lots to 110,000 lots. Consumption is recovering. Smelters underwent losses and ore supply remained tight. Refined zinc supply can tighten. SHFE zinc will remain strong.