SMM

Overnight, LME zinc opened at $2642/mt and closed down $15/mt or 0.57% at $2627/mt. The trading volume was 6888 lots, and open interest increased 2533 lots to 197,000 lots. The imported zinc concentrate TCs fell by US$10/dmt month-on-month to US$80/dmt. Cost support for smelters has been strengthened. Poor economic data has affected investors' expectations for interest rate cuts and a mild recession in the next year, and the bullish sentiment still exists.
Overnight, the most-traded SHFE 2402 zinc contract opened at 21450 yuan/mt and fell slightly to close at 21520 yuan/mt, down 30 yuan/mt or 0.14%. Trading volume stood at 28,000 lots, and open interest gained by 495 lots to 89,000 lots. TCs continued to decline, and the cost-side support for smelters has increased. However, the weak performance of the domestic consumer market has little support for zinc prices. From a fundamental point of view, the upside space for SHFE zinc is limited.