LME zinc prices opened at $2579.5/mt last evening and touched an intraday high of $2590/mt, with the low-end of $2526/mt. It closed down $23.5/mt or 0.91% at $2549.5/mt Trading volumes increased to 8262 lots, with open interest rose 851 lots to 205,000 lots. LME zinc inventories increased by 9225 mt to 142750 mt, an increase of 6.91%.
The most traded SHFE 2401 opened and then lower at 21155 yuan/mt and closed at 21190 yuan/mt overnight, down 160 yuan/mt or 0.75%. The trading volume was down to 41117 lots, and open interest added 1867 lots to 88129 lots. Zinc prices are running weakly, mainly due to the increase in LME inventory to a new high since August, and the increase in production suspensions of galvanizing companies in the north under environmental protection control from November 19 to 23, resulting in poor overall consumption. SMM believes that the spot prices will consolidate at lows in the short term.
