SMM Morning Comment For Zinc Market On February 20

SHANGHAI, February 20 (SMM) –
Overnight, LME zinc opened at $2,395/mt on Monday, hiked to a high of $2,410/mt after hitting a low of $2,367/mt, and finally closed up $18.5/mt or 0.77% at $2,406.5/mt. Trading volume increased to 9,851 lots. Open interests mounted by 2,920 lots to 248,000 lots. Overnight LME zinc stocks increased by 5,225 mt to 270,050 mt, up 1.97% day on day. LEM zinc prices inched up amid the weakening of the US dollar index, but sustained inventory uptick and probably delayed overseas interest rate cuts curbed the upside.
The most-traded SHFE zinc contract opened at 20,240 yuan/mt on Monday, hitting a high of 20,450 yuan/mt, and closed up 155 yuan/mt 0r 0.76% at 20,420 yuan/mt. Trading volume decreased to 36,765 lots. Open interests dropped by 3,553 lots to 67,055 lots. After the holiday, downstream sectors resumed production, and purchased zinc at bargain prices, improving spot transactions. At the same time, costs offered a big boost to zinc prices.