[SMM Zinc Morning Review] The U.S. dollar index strengthens, zinc prices weakened

Published: Aug 11, 2023 10:00

Source: SMM

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LME zinc prices closed down $29.5/mt or 1.19% at $2,450/mt yesterday evening. The trading volume increased to 7,690 lots, and open interest increased 407 lots to 206,000 lots. LME zinc inventory shed by 2750 mt to 91575 mt. Overnight, the US CPI data recorded 3.2%, which was lower than the expected 3.3%.

Inflation rose moderately, but it was still far from the Fed's target. The most active SHFE 2309 zinc contract prices closed at 20,755 yuan/mt overnight, down 120 yuan/mt or 0.57%. The trading volume was down to 76,615 lots, and open interest increased 238 lots to 93,190 lots.

The US dollar was strong, weighing on SHFE zinc; but the recent rise in overseas energy prices and domestic market sentiment will help zinc prices rebound.

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