Overnight, LME zinc prices opened at $2538/mt and closed down $12.5/mt or 0.49% at $2529.5/mt. The trading volume was 9480 lots, and open interest decreased 2159 lots to 219,000 lots. LME warrants decreased by 3,550 tons yesterday to 108,050 tons, providing a certain support for zinc prices.
Last evening, the most active SHFE 2311 zinc contract prices opened at 21240 yuan/mt and closed at 21580 yuan/mt, up 5 yuan/mt or 0.02%. Trading volume stood at 51,000 lots, and open interest gained by 5293 lots to 111,000 lots. Customs data shows that China imported less than 30,000 tons of zinc ingots in August, a sharp decline from the previous month. However, the SHFE/LME zinc price ratio ratio has been relatively high recently, stabilizing above 8.5. The import window remained open which, combined with the recent low-price shipments of imported zinc in the East China market will keep SHFE zinc prices from rising.
