SHFE zinc weakened amid sluggish downstream demand [SMM zinc morning comment]

LME zinc opened at $2825/mt yesterday evening, and hit a high of $2827.5/mt before falling back to $2758/mt, and closed at $2790/mt, a decrease of $36.5/mt or 1.29%. Trading volume increased to 10641 lots, and open interest grew 2068 lots to 245,000 lots. LME zinc inventory dropped by 325 mt or 0.13% to 255850 mt. Most non-ferrous metals fell back, but the U.S. manufacturing PMI data for April unexpectedly cooled to a four-month low, and the U.S. dollar index fell accordingly.

Last evening, the SHFE 2406 zinc contract opened at 22175 yuan/ton with a low of 22140 yuan/ton and a high of 22480 yuan/ton. It finally closed down at 22450 yuan/ton, down 25 yuan/ton, or 0.11%. The trading volume dropped to 96058 lots, and the open interest decreased by 633 lots to 110,000 lots. Spot consumption was depressed due to previous high zinc prices. Fundamentals support weakened.