Overnight, LME zinc opened at $2795/mt, hitting a low and high of $2783/mt and $2838/mt respectively, and closed higher at $2794.5/mt. Trading volume decreased to 8967 lots, and open interest decreased 285 lots to 244,000 lots. LME zinc inventory dropped by 750 mt or 0.29% to 255100 mt. The 2.6% month-on-month growth in U.S. durable goods orders in March was basically in line with expectations. The rise in the U.S. dollar index again suppressed zinc prices. We will pay attention to the U.S. economic data to be released later this week.

The most active SHFE 2406 zinc contract prices opened at 22565 yuan/mt and gained 25 yuan/mt or 0.11% at 22490 yuan/mt, with the high-end of 22640 yuan/mt and the low-end of 22445 yuan/mt. Trading volumes decreased to 81995 lots and then interest grew 50 lots to 109,000 lots. Demand remains weak. It is expected that the subsequent upward space for SHFE zinc may be limited.