SMM zinc morning comment

Overnight, LME zinc prices opened at US$2,621/ton and touched a high of US$2,622/ton. Entering the night trading session, LME zinc prices moved rapidly downwards and tested as low as 2,562 US dollars/ton, and finally closed down at 2,590 US dollars/ton, down 22 US dollars/ton, or 0.84%. The trading volume decreased by 1,270 lots to 9,084 lots, and the open interest increased by 1,672 lots to 202,000 lots. LME inventory increased by 100 tons to 223325 tons, an increase of 0.04%. The minutes of the Federal Reserve meeting showed that the urgency of cutting interest rates was downplayed, and Federal Reserve officials said that a soft landing of the economy was more likely. The U.S. dollar index rose again.
Overnight, the most-traded SHFE 2402 zinc contract opened at 21505 yuan/mt and touched a low of 21395 yuan/mt and a high of 21545 yuan/mt before closing at 21475 yuan/mt, down 75 yuan/mt or 0.35%. Trading volume decreased 45926 to 39,900 lots, and open interest decreased by 3273 lots to 82,500 lots. Despite the ending of production restrictions in many regions, spot trading was weak, weakening fundamental support for zinc prices.