Social inventory destocking notably boosts sentiment; SHFE zinc consolidates on a strong note [SMM Zinc Morning Comment]

Yesterday, the LME was closed due to the UK Summer Bank Holiday. Overnight, the SHFE zinc 2610 contract opened at 26,660 yuan/mt, recorded its intraday low right at the open, then drifted higher to touch a high of 27,035 yuan/mt, and finally settled at 26,950 yuan/mt, up 240 yuan/mt, or 0.90%. Trading volume decreased to 85,705 lots, while open interest increased by 5,442 lots to 171,000 lots. With LME zinc closed overnight, SHFE zinc posted a bullish candlestick overnight. A significant drawdown in China's zinc ingot social inventory boosted market sentiment, and together with increased long positions, pushed the SHFE zinc price center higher. The market is expected to consolidate on a strong note during the day.

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