LME was closed on Monday, while domestic market turbulence resurged [SMM Zinc Morning Comment]

SMM, May 26:

Overnight, due to the UK's Spring Bank Holiday, the LME was closed for the day.

Overnight, the most-traded SHFE zinc 2507 contract opened at 22,185 yuan/mt. In the early session, SHFE zinc fluctuated along the daily moving average. Later, news spread that a domestic smelter continued maintenance and production suspension, prompting bulls to enter the market. SHFE zinc surged higher, reaching a high of 22,695 yuan/mt at the end of the session. It finally closed up at 22,645 yuan/mt, up 460 yuan/mt or 2.07%. Trading volume increased to 17.3 lots, while open interest rose by 13,984 lots to 133,000 lots. Overnight, SHFE zinc recorded a large bullish candlestick. As Trump suspended the imposition of high tariffs on the EU, market risk aversion sentiment pulled back somewhat. On the fundamental side, news spread that a smelter in South China extended its maintenance, sparking market concerns over zinc ingot supply. Additionally, consumption remained resilient, driving SHFE zinc higher. It is expected that SHFE zinc will continue to fluctuate at highs today.