LME Zinc Weakened as US Dollar Soared amid a Widespread Overseas Credit Crisis

SHANGHAI, Mar 16 (SMM) – Overnight, LME zinc opened at $2,914/mt, touching a high and low at $2,930/mt and $2,835/mt, and closed down $40.5/mt or 1.39% at $2,877/mt. Trading volume was up to 10,893 lots, and open interest lost 843 lots to 185,000 lots. LME zinc inventory decreased by 125 mt to 37,775 mt, a drop of 0.33%. Affected by a sharp rise in the US dollar and the widespread overseas credit crisis, overseas market sentiment was depressed, dragging down the LME zinc.

The most traded SHFE 2304 zinc contract opened lower at 22,490 yuan/mt in overnight trading and closed at 22,415 yuan/mt, down 460 yuan/mt or 2.01%. The trading volume was down to 72,375 lots, and open interest dipped 199 lots to 82,307 lots. Despite the sufficient supply, the domestic zinc ingot social inventory still hovered at a low level, and downstream enterprises are likely to enhance restocking efforts when SHFE zinc prices fall. Nevertheless, the bearish sentiment will still weigh on SHFE zinc prices.