Last evening, LME zinc prices opened at $2428/mt and went up to close at $2439/mt, up $11/mt or 0.45%. Trading volume decreased to 5723 lots, and open interest decreased 1579 lots to 202,000 lots. LME zinc inventory dropped by 1175 mt or 0.56% to 211075 mt. The annualised PPI in the United States in November was 0.9%, which was lower than the expected 1%, a new low since June this year. The PPI in November was 0%, and the market expected 0.1%. The Federal Reserve kept interest rates unchanged, acknowledging that the economy and inflation have improved. Slowing down, Powell said that interest rate cuts have come into view. The dovish speech has obviously improved market sentiment, and LME zinc has been boosted by this.
The most active SHFE 2311 prices opened at 20490 yuan/mt and lost 35 yuan/mt or 0.17% to settle at 20540 yuan/mt in last evening trading with the high-end of 20585 yuan/mt and the low-end of 20490 yuan/mt. Trading volumes decreased to 21999 lots and open interest grew 547 lots to 74278 lots. SHFE zinc rose overnight, and found support at the middle of the Bollinger Bands. The People's Bank of China said that at the end of November, M2 increased by 10% year-on-year, and the growth rate was 0.3 and 2.4 percentage points lower than the end of last month and the same period last year respectively. The increase in social financing in November was 2.45 trillion yuan, 455.6 billion more than the same period last year. The growth rate of M1 in November hit a new low in the past two years. China's financial data in November was generally unsatisfactory. With weak physical demand, economic vitality needs to be further activated. However, from the domestic fundamentals, the strong supply and weak demand have not changed.
