Overnight, LME zinc opened at $2564.5/mt, hitting a high of $2576.5/mt and a low of $2538.5/mt respectively, and closed at $2553/mt, down $16.5/mt or 0.64%. Trading volume decreased to 7843 lots, and open interest fell 3519 lots to 193,000 lots. Overnight, LME zinc inventories increased by 150 tons to 230,750 tons, an increase of 0.07%. LME inventories are still at a high level. Although the U.S. GDP and PCE index were unexpectedly revised down in the third quarter and macro sentiment improved, inventories are still high and funds are mainly hedging and leaving before the holiday. Zinc prices fluctuated weakly.
The most active SHFE 2402 zinc contract prices opened at 21165 yuan/mt and fell 5 yuan/mt or 0.02% to close at 21115 yuan/mt trading with the high-end of 21220 yuan/mt and the low-end of 21095 yuan/mt. Trading volumes decreased to 35662 lots and open interest fell increased lots to 83060 lots. Fundamentally, the shortage of ore coupled with low inventory and cost support kept zinc prices range-bound.
