Exports Drive Destocking, SHFE Zinc Center Moves Upward [SMM Zinc Morning Comment]

Published: Aug 11, 2026 09:06

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[SMM Zinc Morning Comment: Exports Drive Destocking, SHFE Zinc Center Moves Up] Overnight, the most-traded SHFE zinc 2609 contract opened at 25,555 yuan/mt. At the beginning of the session, SHFE zinc briefly dipped to a low of 25,460 yuan/mt. Subsequently, bears reduced positions, and SHFE zinc rose all the way to touch a high of 25,700 yuan/mt near the end of the session. It finally closed up at 25,650 yuan/mt, up 35 yuan/mt, a decline of 0.14%. Trading volume decreased to 49,734 lots, and open interest decreased by 1,326 lots to 119,000 lots.

SMM, August 11:

Overnight, LME zinc opened at $3,711/mt. Initially it drifted lower, hitting a low of $3,687/mt during European trading. Then, bears reduced positions, and LME zinc drifted higher throughout the night session, touching a high of $3,745.5/mt. It finally closed up at $3,735.5/mt, up $37.5/mt, a gain of 1.01%. Trading volume decreased to 11,048 lots, and open interest fell 6,595 lots to 247,000 lots. Overnight, LME zinc formed a small bullish candlestick. US-Iran tensions fluctuated, and the US dollar consolidated. However, LME inventory remained low, and the amount of zinc ingot shipped from China to LME delivery warehouses still needs to be confirmed due to shipping schedules. LME zinc consolidated at highs, and it is expected to mainly consolidate at highs today.

Overnight, the most-traded SHFE zinc 2609 contract opened at 25,555 yuan/mt. Initially it briefly dipped to a low of 25,460 yuan/mt. Then, bears reduced positions, and SHFE zinc rose all the way, touching a high of 25,700 yuan/mt near the end. It finally closed up at 25,650 yuan/mt, up 35 yuan/mt, a gain of 0.14%. Trading volume decreased to 49,734 lots, and open interest decreased 1,326 lots to 119,000 lots. Overnight, SHFE zinc formed a small bullish candlestick. Driven by the LME, SHFE zinc’s center moved higher. Currently it is still mainly driven by the LME. China’s zinc ingot inventory destocked due to exports, providing support to SHFE zinc. It is expected that SHFE zinc will consolidate at highs today.

Data source statement: Except for public information, all other data are based on public information, market communication, and SMM’s internal database models, processed by SMM, and are for reference only. They 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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