LME Drove SHFE, and SHFE Zinc Opened Lower with a Gap [SMM Zinc Morning Comment]

Published: Mar 19, 2026 09:01

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[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2605 contract opened lower with a gap at 23,110 yuan/mt. Bears then continued to add positions, sending SHFE zinc below key support to a low of 22,940 yuan/mt. It finally closed down at 23,010 yuan/mt, down 335 yuan/mt, or 1.43%. Trading volume fell to 55,828 lots, while open interest increased by 1,260 lots to 96,424 lots.

SMM, March 19:

Overnight, LME zinc opened at $3,220.5/mt. In early trading, LME zinc briefly rose to a high of $3,227/mt, after which bulls reduced open interest and LME zinc fluctuated downward all the way, hitting a low of $3,130/mt near the close. It finally closed down at $3,132.5/mt, down $100.5/mt, or 3.11%. Trading volume increased to 16,556 lots, while open interest fell by 6,295 lots to 208,000 lots. Overnight, LME zinc recorded a large bearish candlestick. The US Fed kept interest rates unchanged, US PPI data came in above expectations, and the US dollar strengthened, putting base metals under pressure. Fundamentally, support for LME zinc remained weak, and LME zinc continued to break lower. It is expected to remain in the doldrums today.

Overnight, the most-traded SHFE zinc 2605 contract opened lower with a gap at 23,110 yuan/mt. Afterwards, bears continued to add positions, and SHFE zinc broke lower and fell to a low of 22,940 yuan/mt. It finally closed down at 23,010 yuan/mt, down 335 yuan/mt, or 1.43%. Trading volume fell to 55,828 lots, while open interest increased by 1,260 lots to 96,424 lots. Overnight, SHFE zinc recorded a small bearish candlestick. The US Fed kept interest rates unchanged, and LME zinc moved under pressure. External markets dragged down SHFE, while China inventory remained high and provided weak support for zinc prices. It is expected that SHFE zinc will mainly remain in the doldrums today.

Data Source Statement: Except for public information, all other data is processed and 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.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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