LME zinc prices opened at $2574.5/mt last Friday and touched an intraday high of $2587/mt, with the low-end of $2540/mt. It closed down $15/mt or 0.58% at $2559/mt Trading volumes decreased to 10909 lots, with open interest rising 1046 lots to 205,000 lots. LME zinc stocks fell by 150 mt or 0.11% to 133050 mt. The short sentiment brought about by the LME delivery under weak overseas demand last Friday continued, and LME zinc performed weakly.
The most active SHFE zinc contract prices opened at 21340 yuan/mt and lost 125 yuan/mt or 0.58% to settle at 21300 yuan/mt in last Friday evening trading with the high-end of 21400 yuan/mt and the low-end of 21260 yuan/mt. Trading volumes decreased to 44587 lots and open interest grew 2678 lots to 79665 lots. Last Friday, SHFE zinc fell for three days in a row. The pessimism about the large delivery of LME inventory has not subsided, and SMM inventory increased again to 105,500 mt last Friday. Short funds were more active. However, the downward trends of domestic and foreign TCs also provides support to zinc prices. It is expected that downside room for zinc prices will be limited.
