LME Zinc Fluctuated At Lows On Fed's Hawkish Tone

Overnight, LME zinc closed at $2,374/mt, up $4/mt or 0.17%. Trading volume decreased to 5,413 lots, and open interest fell 323 lots to 181,000 lots.  LME zinc inventory decreased by 425 mt to 77,825 mt, a drop of 0.54%. Overnight, the Fed's hawkish remarks put pressure on LME zinc prices.

The most active SHFE 2308 zinc contract lost 95 yuan/mt or 0.47% to settle at 19,930 yuan/mt in overnight trading. Trading volumes decreased to 39,887 lots and open interest fell 425 lots to 105,000 lots.  The fundamentals of SHFE zinc have not changed much recently. Zinc prices fluctuated at high levels. The overall spot premiums moved at lows. Downstream buying interest was weak.