[SMM Zinc Morning Review] Expectations over high interest rates in the United States pushed down LME zinc prices

LME zinc prices closed at $2,308/mt last evening, down $43/mt or 1.83%. Trading volume increased to 13,060 lots, and open interest decreased by 3644 lots to 205,000 lots. LME zinc prices fell for four consecutive days in a row. LME zinc inventory increased sharply by 14,725 mt to 106,900 mt, an increase of 15.98%. Overnight, the U.S. July retail sales data exceeded expectations, increasing inflation expectations.

The most active SHFE 2309 zinc contract prices lost 240 yuan/mt or 1.18% to settle at 23100 yuan/mt in overnight trading. Trading volumes decreased to 81036 lots and open interest increased 2479 lots to 88585 lots. The domestic economic data is weak, but downstream enterprises have increased inventory replenishment due to the fall in zinc prices. Spot transactions have improved, and social inventory has been slightly removed from storage, indicating that consumption is still relatively resilient. SHFE zinc underperformed LME zinc.