Zinc contract prices rose amid weakening US dollar index

Overnight, LME zinc prices closed up $12/mt or 0.52% at $2335.5/mt. The trading volume was 6326 lots, and open interest added 56 lots to 205,000 lots. During the Asian trading hours, the U.S. dollar index fell, and the market’s concerns about capital liquidity weakened; then the U.S. index gradually rebounded, and SHFE zinc prices declined.

Overnight, the most active SHFE 2310 zinc contract prices closed at 20130 yuan/mt, up 55 yuan/mt or 0.27%. Trading volume stood at 46,000 lots, and open interest gained by 246 lots to 105,000 lots. There were shipments arrivals from smelters under long-term contracts as well as imported zinc, cooling spot premiums. And the recent support to zinc prices weakened as lower zinc prices drove dip purchasing.