Overnight, LME zinc prices opened at $2456/mt and closed up $20.5/mt or 0.83% at $2479/mt. The trading volume was 8008 lots, and open interest decreased 1260 lots to 202,000 lots. The speaker of the U.S. House of Representatives openly supports Israel, and the impact of the conflict in the Middle East is expanding. Overseas concerns about energy are growing, and short funds have withdrawn.
Last evening, the most active SHFE 2312 zinc contract prices opened at 21180 yuan/mt and closed at 21145 yuan/mt, up 85 yuan/mt or 0.4%. Trading volume stood at 45,000 lots, and open interest gained by 111 lots to 81,000 lots.
The State Council's regular policy briefing stated that it will increase the issuance of treasury bonds to support post-disaster recovery and reconstruction and improve disaster prevention, reduction and relief capabilities. All the additional treasury bonds issued this time will be allocated to local governments through transfer payments. It is planned to use 500 billion yuan this year. 500 billion yuan will be carried forward to be used next year, and the issuance of incremental government bonds has boosted sentiment. The market's expectations for end-user consumption have improved.
