Last evening, LME zinc prices opened at $2443.5/mt and went down to close at $2424/mt, down $21.5/mt or 0.88%. Trading volume increased to 10089 lots, and open interest decreased 2260 lots to 216,000 lots. LME zinc inventory decreased by 1600 mt to 81850 mt, a drop of 1.92%. U.S. retail sales data for September far exceeded expectations, and the market is betting on an increased probability of interest rate hikes. The weakening of the U.S. dollar has put downward pressure on LME zinc.
Overnight, the most-traded SHFE 2311 zinc contract opened at 20830 yuan/mt and hit a high of 21220 yuan/mt before closing at 21180 yuan/mt, up 165 yuan/mt or 0.79%. Trading volume was 67480 lots, and open interest decreased by 3374 lots to 81604 lots. Overnight short positions were reduced. Spot transactions improved as zinc prices fell, providing support for zinc prices. However, the increase in the supply will limit the upside room.
