China Inventory Continued to Increase, SHFE Zinc Fluctuated Downward [SMM Zinc Morning Comment]

Published: Mar 17, 2026 08:59

Save

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2604 contract opened at 23,930 yuan/mt. In early trading, SHFE zinc briefly rose to a high of 23,970 yuan/mt, then bulls reduced open interest, dragging the price center lower and leaving it in the doldrums. It touched a low of 23,820 yuan/mt during the session and finally closed down at 23,880 yuan/mt, down 25 yuan/mt, or 0.1. Trading volume fell to 29,661 lots, while open interest decreased by 531 lots to 76,786 lots.

SMM News, March 17:

Overnight, LME zinc opened at $3,297.5/mt. At the start of the session, bears added to positions, and the center of LME zinc moved lower, fluctuating downward throughout the session and hitting a low of $3,255/mt during European trading hours. It then rebounded. Trading was suspended for about three hours due to technical issues. After reopening, LME zinc touched a high of $3,306.5/mt, then the center moved lower again, and it finally closed down at $3,279/mt, down $14.5/mt, or 0.44%. Trading volume increased to 7,502 lots, and open interest rose by 2,947 lots to 218,000 lots. Overnight, LME zinc posted a small bearish candlestick. Geopolitical issues continued to cause significant disruptions, and the market remained cautious. Expectations for interest rate cuts were still weak, and the US dollar continued to weigh on base metals. The center of LME zinc edged lower, and it is expected to fluctuate primarily today.

Overnight, the most-traded SHFE zinc 2604 contract opened at 23,930 yuan/mt. At the start of the session, SHFE zinc briefly rose to a high of 23,970 yuan/mt, then bulls reduced positions, and the center of SHFE zinc moved lower, remaining in the doldrums. During the session, it touched a low of 23,820 yuan/mt, and finally closed down at 23,880 yuan/mt, down 25 yuan/mt, or 0.1%. Trading volume fell to 29,661 lots, and open interest decreased by 531 lots to 76,786 lots. Overnight, SHFE zinc posted a small bearish candlestick. Macro sentiment was weak, China zinc ingot inventory was still building up to a high level in recent years, supply pressure remained heavy, and consumption recovery fell short of expectations. The center of SHFE zinc moved lower, and SHFE zinc is expected to fluctuate primarily.

Data Source Statement: Except for publicly available information, all other data was 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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

2 hours ago

Ongoing Middle East Tensions: How Do They Affect China's Die-Casting Zinc Alloy Market?

Since the joint U.S.-Israeli airstrikes on Iran on February 28, tensions in the Middle East have persisted for 45 days. Against this backdrop, the die-casting zinc alloy market in China has been affected to varying degrees in terms of costs, demand, and industrial structure. The following is a detailed analysis.

2 hours ago

6 hours ago

Kipushi Delivers Record Zinc-in-Concentrate Output in Q1 2026

On April 14, Kipushi concentrator from Ivanhoe reported record zinc-in-concentrate production of 65,044 tonnes in Q1 2026, up 6% quarter-on-quarter from 61,444 tonnes in Q4 2025. January output alone reached a record 22,968 tonnes. The quarterly improvement was supported by strong concentrator performance, with ore milled at 196,774 tonnes, feed grade at 36.96% zinc, and zinc recovery at 90.63%. Despite the record result, operations were still affected by electrical grid instability. After increasing on-site back-up generator capacity by 20% to 20MW in Q4 2025, Kipushi has now also completed and commissioned upgrades to its 120kV intake substation, which are expected to improve operational stability and better protect key infrastructure including the concentrator and shaft.

6 hours ago

SHFE Zinc Slightly Recovers [SMM Zinc Morning Comment]

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2605 contract opened at 23,500 yuan/mt, briefly dipped to a low of 23,475 yuan/mt at the start of the session. Bulls then increased their open interest, and SHFE zinc quickly rallied to a high of 23,740 yuan/mt before the center shifted slightly lower. It ultimately closed up at 23,710 yuan/mt, gaining 135 yuan/mt, a rise of 0.57%. Trading volume fell to 39,077 lots, while open interest increased by 288 lots to 74,664 lots.

6 hours ago