Social Inventory Stays High, Zinc Prices Encounter Resistance [SMM Zinc Morning Comment]

Published: Jun 26, 2026 08:48

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[SMM Zinc Morning Comment] Overnight, SHFE zinc recorded a fifth consecutive bearish candle, with moving averages above forming resistance. Overnight, SHFE zinc was in the doldrums. On the macro front, inflation remained high, while on the fundamentals side, it was the off-season for consumption...

Overnight, LME zinc opened at $3,420/mt. In intraday trading, LME zinc fluctuated around the daily moving average with an amplitude of around $50/mt. During the European session, it dropped to a low of $3,397/mt and touched a high of $3,448.5/mt, finally closing up at $3,438/mt, up $30/mt, a gain of 0.88%. Trading volume decreased to 12,761 lots, and open interest decreased by 4,826 lots to 261,000 lots. Overnight, LME zinc recorded a small bullish candlestick, with the lower Bollinger Band above forming resistance. The US May PCE data was broadly in line with expectations, easing market expectations for further rate hikes by the US Fed. LME zinc mainly fluctuated in a range.

Overnight, the most-traded SHFE zinc 2608 contract opened at 24,030 yuan/mt. Initially, it quickly rose to a high of 24,050 yuan/mt. Then, bears increased positions to pressure SHFE zinc, causing it to plummet to a low of 23,855 yuan/mt. Subsequently, bulls bought on the dip, and SHFE zinc drifted higher. It eventually closed down at 23,980 yuan/mt, down 30 yuan/mt, a loss of 0.12%. Trading volume decreased to 57,261 lots, and open interest increased by 1,471 lots to 109,000 lots. Overnight, SHFE zinc recorded five consecutive bearish candlesticks, with multiple moving averages above forming resistance. Overnight, SHFE zinc was in the doldrums. On the macro front, inflation remained high. On the fundamentals side, during the consumption off-season, social inventory increased again by 700 mt, the export window was closed, and zinc prices encountered resistance from above.

Data Source Statement: All data other than publicly available information are based on public information, market communication, and SMM's internal database models, processed by SMM, for reference only and do not constitute any 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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