Slight destocking of zinc ingot in China, but price rise faces certain obstacles [SMM Zinc Futures Brief Comment]

Published: Jun 29, 2026 17:41

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[China Zinc Ingot Sees Slight Destocking, but Price Rise Faces Certain Obstacles] The most-traded SHFE zinc 2608 contract opened at 24,310 yuan/mt. After opening, SHFE zinc moved sideways above the daily average, dipping to 24,285 yuan/mt during the session. Near the close, bears reduced positions, and SHFE zinc consolidated to touch a high of 24,505 yuan/mt. It finally settled up at 24,470 yuan/mt, gaining 70 yuan/mt or 0.29%. Trading volume decreased to 72,207 lots, and open interest decreased by 5,987 lots to 102,000 lots.....

SMM, June 29: The most-traded SHFE zinc 2608 contract opened at 24,310 yuan/mt. After opening, SHFE zinc moved sideways above the daily average line, dipping to a low of 24,285 yuan/mt during the session. Near the close, as bears reduced positions, SHFE zinc consolidated and rose to a high of 24,505 yuan/mt, eventually closing up 70 yuan/mt or 0.29% at 24,470 yuan/mt. Trading volume decreased to 72,207 lots, and open interest fell by 5,987 lots to 102,000 lots. According to SMM statistics, China's social inventory saw modest destocking, but the absolute level remained high YoY. Coupled with weak end-use consumption, prices encountered significant resistance. This afternoon, LME continued to decline. Given the linkage between SHFE and LME, one should be alert to the possibility of SHFE zinc opening lower with a gap tonight.

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