Last Friday, LME zinc opened at $2422.5/mt and closed up $8.5/mt or 0.35% at $2438.5/mt. The trading volume was 6269 lots, and open interest fell 1301 lots to 207,000 lots. LME inventories continued to fall to 78,125 mt, and most of the destockings were from Singapore warehouses. Combined with the fact that China’s zinc imports in September exceeded expectations by 59,000 mt, it is more likely that overseas inventories will be transferred domestically. Overseas consumption has weakened.
Last Friday evening, the most active SHFE 2311 zinc contract prices opened at 20975 yuan/mt and closed at 21075 yuan/mt, up 95 yuan/mt or 0.45 %. Trading volume stood at 42,000 lots, and open interest decreased by 1583 lots to 70,000 lots. Zinc concentrate in northern China is about to enter the seasonal off-season. At the same time, the output of imported ore is less than expected. The tightness of the ore end will continue, and TCs may continue to decrease. However, oversupply in the smelting end is unlikely to reverse. Smelters maintained normal production thanks to imported ore. Fundamental support is limited.
