SHFE Zinc Market Closed for Labour Day Holiday, Focus on Today's Inventory Performance [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,326/mt. Early in the session, LME zinc edged lower and dipped to the intraday low of $3,306/mt. Prices then continued to rise, with the center steadily lifting to reach a high of $3,383/mt, before pulling back slightly from the highs to consolidate. LME zinc ultimately closed up at $3,358.5/mt, gaining $20/mt or 0.60%. Trading volume increased to 101,000 lots, while open interest decreased by 1,114 lots to 231,000 lots. On May 5, LME zinc inventory remained flat at 96,250 mt. Overnight, LME zinc posted a bullish candlestick, with the 10-day moving average exerting resistance above and the 40-day moving average providing support below. US Defense Secretary Hegseth stated that the US-Iran ceasefire agreement remained in effect, easing concerns over a full-scale war in the Middle East following the attack on the UAE. LME zinc's center was driven higher as a result.

Overnight, SHFE zinc was closed for the Labour Day holiday. According to SMM's market communication, as of April 30, domestic inventory declined slightly. Overnight, the most-traded SHFE zinc 2606 contract was closed for the Labour Day holiday. Currently, bullish and bearish forces are intertwined in the market. China's zinc ingot inventory in May is expected to edge lower MoM, but still maintain growth YoY. TCs continue to provide price floor support. Combined with ongoing macro disturbances, prices are expected to maintain a fluctuating trend in the short term.

Data source disclaimer: Data other than publicly available information is derived by SMM based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute decision-making advice.