The most-traded SHFE 2303 zinc contract fell after opening lower at $2514.5mt, and finally closed at $2481/mt, down $31/mt or 1.23%. Trading volume was up to 9070 lots, and open interest fell by 1325 lots to 225,000 lots. LME zinc inventory shed by 1525 mt to 90900 mt. As Federal Reserve officials released dovish remarks, the U.S. dollar index weakened and recovered slightly.
The most active SHFE 2311 zinc contract prices opened at 21230 yuan/mt and closed at 21295 yuan/mt overnight, down 160 yuan/mt or 0.75%. The trading volume was down to 53684 lots, and open interest decreased 710 lots to 108,000 lots. SMM domestic refined zinc output in September increased to 544,000 mt, and is expected to exceed the high of 590,000 mt in October, putting pressure on long-term supply. At the same time, the situation in Country Garden has once again triggered market concerns about consumption, and zinc prices met resistance.
