Falling LME zinc inventories support LME zinc prices

LME zinc prices opened at $2468/mt last evening and closed up $11.5/mt or 0.47% at $2476/mt, with the low-end of $2442.5/mt. Trading volume rose to 7637 lots, and open interest increased by 1251 lots to 200,000 lots. LME zinc inventory decreased by 3175 mt to 148400 mt.

The most active SHFE 2310 zinc contract prices opened at 21335 yuan/mt and closed at 21305 yuan/mt last evening, down 15 yuan/mt or 0.07%. The trading volume was down to 54556 lots, and open interest decreased 402 lots to 106,000 lots.

Data related to the US service industry in August exceeded expectations and unexpectedly gained momentum. New orders increased and input prices rose. This showed that US consumer demand and the overall economy are still strong, but it also means that inflation problems are once again prominent. The US dollar rose. SMM data showed that China's refined zinc output in August was 526,500 mt, a month-on-month decrease of 24,600 mt or 4.46%. The decline in production provided support for the domestic zinc market.