LME zinc opened at $2576.5/mt last evening, and hit a high of $2611/mt before falling back to a low of $2560.5/mt, and closed at $2569.5/mt, down $8/mt or 0.31%. Trading volume was 9917 lots, and open interest decreased by 5960 lots to 197,000 lots. LME zinc stocks increased by 23450 mt or 1.23% to 230600 mt overnight, the highest since September 2021. In December, the U.S. consumer confidence index rose to the highest level in five months. Existing home sales unexpectedly increased in November, boosting market sentiment. At the same time, on December 18, Trafigura announced the closure of its Myra Falls polymetallic lead, zinc and copper mine again due to increased operating costs and low copper and zinc prices, exacerbating expectations of shortages in the ore supply. However, the large delivery of LME inventories suppressed market sentiment.
Overnight, the most-traded SHFE 2402 zinc contract opened at 21160 yuan/mt and hit a high of 21180 yuan/mt before closing at 21115 yuan/mt, up 45 yuan/mt or 0.21%. Trading volume was 44725 lots, and open interest increased by 435 lots to 84861 lots.
