SHFE zinc prices moved upward [SMM Zinc Morning Comment]

Overnight, LME zinc prices opened at US$2,456/ton and hit a high of US$2,533/ton. It finally closed up at US$2,526/ton, up US$72/ton, or 2.93%. The trading volume increased by 3,820 lots to 10,633 lots, and the open interest increased by 2,157 lots to 218,000 lots. LME zinc inventory dropped by 1525 mt or 0.77% to 197600 mt. Former hawkish officials from the Federal Reserve turned dovish in their speeches, coupled with continuous declines in LME inventories, the strong performance of bullish funds in the market helped push LME zinc upward.
The most interest-traded SHFE 2403 zinc contract opened at 20910 yuan/mt last Friday before rallying to a peak of 21090 yuan/mt. It eventually settled at 21035 yuan/mt, up 255 yuan/mt or 1.23%. Trading volume decreased 39438 to 53207 lots, and open interest fell by 2688 lots to 87073 lots. The decline in domestic inventories and pre-holiday stockpiling supported SHFE zinc prices.