News of overseas smelters increasing production lowered LME zinc prices from highs [SMM zinc morning comment]

LME zinc opened at $2550.5/mt last Friday, touching a high and a low of $2591/mt and $2536.5/mt respectively. LME zinc rallied and closed up $6.5/mt or 0.25% to $2566/mt. The trading volume fell to 8474 lots. Open interest decreased by 957 lots to 230,000 lots. LME zinc inventory decreased by 1900 mt to 264125 mt, a drop of 0.71%. Affected by the increase in output of overseas smelters last Friday, LME zinc fell back from highs. But overseas macro optimism remained.

During last Friday’s night session, the most-traded 2405 zinc contract fell to 21255 yuan/mt after opening at 21440 yuan/mt, but then rallied before closing at 21385 yuan/mt, down 30 yuan/mt or 0.14%. Trading volume was 60777 lots, and open interest increased by 1312 lots to 97487 lots. The recent weak supply and demand pattern of zinc fundamentals has not changed, and with the high zinc price, spot transactions are weak, and the upward trend of zinc prices is weak.