[SMM Zinc Morning Review] LME zinc posted five-day losing streak

Published: Aug 17, 2023 09:46

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LME zinc prices closed down $6/mt or 0.26% at $2,302/mt in overnight trading. The trading volume rose to 12,546 lots, and open interest fell by 4,838 lots to 200,000 lots. LME zinc inventories increased sharply by 34,850 mt to 141,750 mt, an increase of 19.04%, showing sluggish overseas consumption.

The minutes of the Federal Reserve meeting showed that inflation needs to further tighten monetary policy, and the dollar rebounded, which is expected to still put pressure on LME zinc.

The most active SHFE 2309 zinc contract prices lost 110 yuan/mt or 0.55% to settle at 19,990 yuan/mt in overnight trading. Trading volumes decreased to 69,832 lots and open interest fell 2,719 lots to 86,445 lots. Overseas deliveries to LME warehouses continued, and the macro data did not perform well. But as the recent spot transactions have improved significantly, zinc prices may rebound.

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