LME zinc trading volume rose to 14,897 lots, while open interest increased by 2,493 lots to 256,000 lots. The contract’s decline took it below several moving-average levels, while its daily chart formed a large bearish candle and momentum indicators weakened. The move came as broader nonferrous metals also fell after U.S. Initial jobless claims dropped to a three-month low, reinforcing expectations of a soft economic landing while inflation expectations remained elevated.
The most-traded SHFE zinc 2612 contract opened at 25,300 yuan a metric ton and climbed briefly to 25,415 yuan before sellers increased positions. Trading volume declined to 60,181 lots, but open interest rose by 3,258 lots to 121,000 lots. The contract formed a bearish candle with a long upper shadow, while its daily price center continued to move lower and the KDJ gap widened downward.
Zinc oxide producers also reported weaker operating conditions, with soft orders from tire factories and mediocre demand for household rubber, feed and ceramic applications; electronic-grade demand was relatively stable.
Supply-chain agreement could eventually affect high-purity materials used in semiconductor manufacturing, but its direct impact on zinc supply cannot yet be measured. Micron Technology said it will provide strategic funding for Indium Corporation to expand refining and high-purity materials manufacturing in Rome, New York, alongside a long-term supply agreement. The companies did not disclose the investment amount, covered minerals, capacity increase or commissioning schedule, so the announcement does not establish any near-term change in zinc availability.