SHFE zinc pulled back in night session, dragged by LME movement [SMM zinc morning comment]

SMM, October 13:

Overnight, LME zinc opened at $3,800/mt. After the open, LME zinc briefly rose to a high of $3,827/mt, then pulled back sharply, and subsequently consolidated at lows. Near the end of the session, LME zinc dipped to a low of $3,750/mt, ultimately closing down at $3,753/mt, a decline of $48.5/mt or 1.28%. Trading volume decreased to 12,448 lots, and open interest fell by 1,840 lots to 253,000 lots. Overnight, LME zinc formed a bearish candlestick, with the 20-day moving average above acting as resistance. The US dollar index continued to strengthen, weighing on base metals prices. In addition, LME zinc inventory increased by 6,000 mt to 132,800 mt, reaching a new high since mid-June 2025. Bulls reduced positions, and LME zinc prices pulled back.

Overnight, the most-traded SHFE zinc 2611 contract opened at 25,995 yuan/mt. After the open, SHFE zinc consolidated, touching a high of 26,105 yuan/mt near the beginning of the session, and dipping to a low of 25,950 yuan/mt near the end of the session. It ultimately closed down at 25,980 yuan/mt, a decline of 135 yuan/mt or 0.52%. Trading volume decreased to 43,740 lots, and open interest fell by 2,196 lots to 101,000 lots. Overnight, SHFE zinc formed a bearish candlestick, with the 10-day moving average above acting as resistance. Affected by the decline in LME prices, SHFE zinc opened lower with a gap in the night session. In addition, the window for shipping zinc ingots to delivery warehouses for export closed, and domestic consumption showed mediocre performance. On Monday, SMM zinc ingot inventory continued to increase slightly. SHFE zinc is expected to consolidate in the short term.

Data source statement: Except for publicly available information, all other data are processed by SMM based on public information, market communication, and SMM's internal database models, and are for reference only and do not constitute decision-making advice.