SMM zinc morning comments: LME zinc remained rangebound

Overnight, LME zinc prices opened at US$2,500/ton and dropped to a low of US$2,494/ton during European trading, finally closing at US$2,523/ton, up US$21.5/ton, or 0.86%. Trading volume decreased to 6211 lots, and open interest decreased by 6957 lots to 221,000 lots. LME zinc stocks increased by 3325 mt or 1.24% to 270525 mt overnight. It is reported that Volcan will stop production at its three mines in Peru from Tuesday for up to 30 days, with an estimated impact of about 8,000 tons. In addition, MBC Mining Company will resume the KZK zinc-lead-copper project, with an annual output of 235 million pounds of zinc.

SHFE 2405 zinc opened at 21170 yuan/mt overnight and rose to a high of 21250 yuan/mt. The contract closed at 21195 yuan/mt, up 10 yuan/mt or 0.05%. Transaction volume decreased to 34936 lots, and open interest decreased by 307 lots to 103,000 lots. Fed interest rate cuts are still expected, and the weak supply and demand have not changed significantly yet. Zinc prices are consolidating at a low level.