[SMM Zinc Morning Comment] Zinc Futures Prices Strengthened On Improved Macro Sentiment

The government promised to consolidate the stabilization and recovery of the real estate market and boost the real estate industry. Since the second quarter of this year, international organizations and institutions such as the United Nations and the World Bank have raised their expectations for China's economy growth this year. Last Friday, the U.S. Labor Department said its employment index rose 1% in the second quarter. 

LME zinc prices gained 1.59% to close at $2,493/mt last Friday evening. Trading volumes decreased to 7,992 lots and open interest was up 555 lots to 198,000 lots.  Last Friday, LME inventories increased by 3,075 mt to 99,150 mt, an increase of 3.20%.

The most active SHFE 2309 zinc contract gained 165 yuan/mt or 0.80% to settle at 20,810 yuan/mt last Friday evening. Trading volumes decreased to 69,751 lots and open interest grew 2,108 lots to 121,000 lots. As of July 28, the total inventory of zinc ingots in seven major markets stood at 122,500 mt, 1,700 mt lower than that on July 24.