LME zinc prices opened at $2570.5/mt and closed up $31/mt or 1.2% at $2607/mt last evening. The trading volume increased to 10180 lots, and open interest added 1644 lots to 201,000 lots. LME zinc inventory shed by 1675 mt to 74250 mt. A fire broke out at the Ozernoye mining and processing complex in the Republic of Buryatia, Russian Federation. The fire has been stopped and there are no casualties yet. The mine can produce 600,000 mt of zinc ore and 80,000 mt of lead ore with physical content each year. It is in a state of evaluation as to whether its operation will be affected next year, which has triggered market concerns about supply, boosting LME zinc.
The most traded SHFE 2312 zinc contract opened at 21795 yuan/mt and closed at 21675 yuan/mt overnight, up 45 yuan/mt or 0.21%. The trading volume was down to 49419 lots, and open interest decreased 332 lots to 90719 lots. Domestic fundamental support was weak. SMM's refined zinc production broke a new high in October and reached 600,000 mt. Supply pressure was strong.
