The Macroeconomic Slowdown Has Been Verified By Data, And The U.S. Index Has Fallen And Given Support To Zinc Futures

Last Friday, LME zinc opened at $2546/mt and closed up $17/mt or 0.67% at $2560/mt. The trading volume was 5702 lots, and open interest added 214 lots to 204,000 lots. Overseas large players once again delivered huge quantities of more than 68,000 mt, and LME inventories increased to more than 210,000 mt, reaching the highest level in the past two years. LME 0-3 contango expanded to 8.1, dampening market optimism and grew bearishness.
Last Friday evening, the most active SHFE 2401 zinc contract prices opened at 21100 yuan/mt and closed at 21060 yuan/mt, up 50 yuan/mt or 0.24%. Trading volume stood at 42,000 lots, and open interest decreased by 1324 lots to 88,000 lots. It is expected that more than 40,000 mt of refined zinc will still be imported in November. Against the background of high domestic supply in the fourth quarter, imports will still be replenished in large quantities. Market surplus is expected to increase, and zinc price support will be weak.