SHANGHAI, May 22 (SMM) – LME zinc moved upwards after opening at $2,458.5/mt last Friday, but then fell back slightly before closing at $2,476.5/mt, up $23.5/mt or 0.96%. Trading volume added 1,074 lots to 9,695 lots, and open interest rose 1,476 lots to 183,000 lots. LME zinc met resistance at the 5-day and 10-day moving averages. LME zinc inventory decreased by 550 mt to 46,975 mt.
The most-traded SHFE 2307 zinc contract opened at 20,740 yuan/mt at last Friday’s night session and closed at 20,515 yuan/mt, down 5 yuan/mt or 0.02%. Trading volume fell 13 lots to 66,250 lots, and open interest rose 5,242 lots to 107,000 lots.
The overall macro atmosphere is bearish, and strengthening US dollar index also suppressed zinc prices. At present, the import loss of zinc ingots is about 200 yuan/mt. Market players should be alert to the impact of the possible inflows of imported zinc. Zinc prices are expected to fluctuate at a low level in the short term.
