SMM Morning Comment For Zinc Market On August 3

SHANGHAI, Aug 3 (SMM) –

LME zinc prices opened at 2,550.5 on Wednesday, with high and low at 2,550.5 and 2,475, and closed at $2,491/mt, down $64/mt, or 2.5%. Trading volume decreased to 10,447 lots, and open interest increased by 929 lots to 199,000 lots. LME zinc inventory increased by 125 mt to 99,225 mt, a decrease of 0.13%. US ADP employment data far exceeded expectations, which shored up US dollar. The downgrade of US ratings dampened global risk appetite, sending LME zinc down.

The most traded SHFE 2309 zinc contract opened at 21,030 on Wednesday, with high and low at 21,030 and 20,810, and closed at $20,865/mt, down $265/mt, or 1.25%. Trading volumes decreased to 76,243 lots, and open interest was down to 108,000 lots. Rising US dollar kept SHFE zinc from going up. Zinc ore supply was ample. Trade in spot market was weak. Galvanised sheet plants in some regions shut down 30-40% of production due to poor orders and profits.