Chinese New Year Sees Significant Zinc Ingot Inventory Buildup Domestically, SHFE Zinc Pulls Back in Night Session [SMM Zinc Morning Comment]

Published: Feb 25, 2026 08:40

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[SMM Zinc Morning Comment: Significant Zinc Ingot Inventory Buildup During Chinese New Year, SHFE Zinc Pulls Back in Night Session] Overnight, the most-traded SHFE zinc 2604 contract opened at 24,585 yuan/mt. Initially, SHFE zinc rose slightly to touch a high of 24,710 yuan/mt, then fluctuated and pulled back below the daily average line. During the session, it probed a low of 24,510 yuan/mt and continued to fluctuate at lows, eventually closing down at 24,550 yuan/mt, a decrease of 130 yuan/mt.

SMM February 25 News:

Overnight, LME zinc opened at $3,360/mt. After opening, LME zinc fluctuated upward, reaching a high of $3,431.5/mt near the early session. Subsequently, LME zinc continuously pulled back from the high, probing a low of $3,360/mt during the session, then maintained a fluctuating trend below the daily average line, finally closing up at $3,387.5/mt, up $42/mt or 1.26%. Trading volume increased to 9,709 lots, and open interest increased by 415 lots to 230,000 lots. Overnight, LME zinc recorded a bullish candlestick, supported by the middle Bollinger Band. Recent uncertainty surrounding Trump's tariffs persists, with the market largely awaiting further developments. However, with the end of the Chinese New Year holiday, the resumption of domestic trading and demand has boosted market confidence. Base metals generally rose, and the center of LME zinc prices shifted slightly upward.

Overnight, the most-traded SHFE zinc 2604 contract opened at 24,585 yuan/mt. In the early session, SHFE zinc rose slightly to a high of 24,710 yuan/mt, then fluctuated and pulled back below the daily average line. During the session, after probing a low of 24,510 yuan/mt, SHFE zinc maintained a fluctuating trend at lows, finally closing down at 24,550 yuan/mt, down 130 yuan/mt or 0.53%. Trading volume decreased to 33,839 lots, and open interest increased by 3,574 lots to 85,021 lots. Overnight, SHFE zinc recorded a bearish candlestick, supported by the 5-day and 10-day daily average lines below. During the Chinese New Year holiday, domestic zinc ingot inventory accumulated significantly to over 200,000 mt. Coupled with the fact that domestic zinc downstream enterprises have not fully resumed operations, fundamental support for zinc prices is relatively weak. In the night session, SHFE zinc experienced a pullback.

Data Source Statement: Except for publicly available information, other data are processed by SMM based on public information, market communication, and relying on SMM's internal database model, for reference only and do 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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