SHFE zinc hit a new high since February this year, and is expected to continue its consolidation pattern at highs in the short term [SMM zinc morning comment]

Published: Aug 26, 2026 08:51

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[SMM zinc morning comment] Overnight, the most-traded SHFE zinc 2610 contract opened at 26,140 yuan/mt. At the beginning of the session, SHFE zinc briefly dipped below 26,050 yuan/mt. Subsequently, bulls increased their positions, driving SHFE zinc to drift higher and hit a high of 26,425 yuan/mt above the daily average line. At the end of the session, some bulls exited, causing prices to pull back slightly from the highs. It finally closed higher at 26,375 yuan/mt, up 305 yuan/mt, or 1.17%. Trading volume decreased to 103,000 lots, while open interest increased by 11,542 lots to 164,000 lots.

Overnight, LME zinc opened at $3,830/mt. At the beginning of the session, it moved sideways around the daily average line, briefly dipping to a low of $3,814/mt. It then drifted higher and touched a high of $3,893.5/mt during the night session. Towards the end, it pulled back slightly from the high and finally closed up at $3,884.5/mt, up $57.5/mt or 1.50%. Trading volume increased to 13,812 lots, while open interest decreased by 912 lots to 263,000 lots. On August 25, LME zinc inventory increased by 1,800 mt to 95,050 mt, up 1.93%. Overnight, LME zinc recorded a bullish candlestick, with all moving averages below providing support. Recently, concerns over geopolitical conflicts in the Middle East have eased, geopolitical risks have cooled, and the US dollar index has pulled back, boosting the price center of LME zinc upward.

Overnight, the most-traded SHFE zinc 2610 contract opened at 26,140 yuan/mt. At the beginning of the session, it briefly dipped lower to 26,050 yuan/mt, then bulls increased their positions, pushing it to drift higher above the daily average line and touching a high of 26,425 yuan/mt. Towards the end, some bulls exited, and the price pulled back slightly from the high. It finally closed up at 26,375 yuan/mt, up 305 yuan/mt or 1.17%. Trading volume decreased to 103,000 lots, while open interest increased by 11,542 lots to 164,000 lots. Overnight, SHFE zinc recorded a big bullish candlestick, with all moving averages below providing support. Boosted by the external market, the price center of SHFE zinc rose, hitting a new high since February this year. However, China's end-use demand has not shown significant signs of recovery yet, and the upside of zinc prices still faces realistic pressure. Driven by the external market, SHFE zinc is expected to consolidate on a strong note at a high level in the near term.

Data Source Declaration: All data other than publicly available information are processed by SMM based on public information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute investment 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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