Concerns Over US Debt Ceiling Issue And Growing Inventories Weigh Down LME Zinc Prices

SHANGHAI, May 26 (SMM) - LME zinc moved downwards after opening at $2,295/mt on Thursday, closing at $2,257.5/mt, down $37.5/mt or 1.63%. Trading volume added 4,896 lots to 14,242 lots, and open interest rose 3,476 lots to 191,000 lots. LME zinc inventory rose 18,050 mt to 63,450 mt. Concerns over US debt ceiling issue and growing inventories weighed down LME zinc prices.

Overnight, the most-traded SHFE 2307 zinc contract opened at 18,870 yuan/mt. The contract fell at first and then rallied before closing at 18,940 yuan/mt, down 215 yuan/mt or 1.12%. Trading volume fell 464 lots to 222,000 lots, and open interest rose 2,894 lots to 150,000 lots. Strengthening US dollar and weaker-than-expected recovery of domestic economy will pose resistance to SHFE zinc prices.