Zinc social inventories fall over 10,000 mt in week before holiday

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2607 contract opened higher with a gap at 24,880 yuan/mt. At the beginning of the session, SHFE zinc briefly touched a high of 24,925 yuan/mt before pulling back to a session low of 24,735 yuan/mt. However, bears reducing open interest supported SHFE zinc to rebound in a volatile manner, recovering part of the losses. It finally closed higher at 24,780 yuan/mt, up 60 yuan/mt or 0.24%, with trading volume decreasing to 51,326 lots and open interest decreasing by 967 lots to 105,000 lots.

[SMM Morning Meeting Summary: LME Zinc Posted a Bullish Candlestick, Attention on Macro Changes] Overnight, LME zinc opened at $3,545/mt. At the beginning of the session, LME zinc moved sideways around the daily average line, edging down briefly below $3,542.5/mt before rebounding and strengthening in a volatile manner. Near the end of the session, it touched a high of $3,585/mt and ultimately closed up at $3,582.00/mt, gaining $38.5/mt or 1.09%. Trading volume increased to 125,000 lots, while open interest decreased by 212 lots to 230,000 lots.

On May 29, Nexa Resources said its Cajamarquilla zinc smelter in Peru is gradually resuming production following the incident reported on May 13. the electrolysis lines are now fully operational, while one casting line has been back in operation and is currently producing zinc bars. Nexa plans to restart the second casting line within the next few days, followed by the final casting line by mid-June. As a result of the temporary disruption, Nexa estimates a refined zinc production impact of approximately 7,000 mt in Q2 2026, equivalent to around 2% of annual production. The company expects to recover the lost output during H2 2026 and has kept its 2026 sales guidance unchanged. No material financial impact's expected from the incident, with the cause remain under investigation.