Weaker US dollar edges zinc price center up [SMM zinc morning comment]

Published: Oct 19, 2026 09:01 (GMT+8)

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[SMM Zinc Morning Comment] Last Friday, SHFE zinc recorded a small bullish candlestick with a long upper shadow, with the daily candlestick center moving slightly higher and the KDJ gap narrowing. As zinc prices had previously fallen to around 25,200 yuan/mt, downstream purchasing sentiment improved, and social inventory saw destocking...

Last Friday, LME zinc opened at $3,669/mt. In early trading, LME zinc edged down to an intraday low of $3,665/mt. Subsequently, bulls entered the market, pushing prices to drift higher. Approaching the European trading session, prices touched a high of $3,720.0/mt before consolidating around the daily average line. During the night session, pressured by overhead moving averages and profit-taking, LME zinc pulled back in a choppy fashion, giving back some gains near the close. It ultimately settled up at $3,682.0/mt, up $8.5/mt, or 0.23%. Trading volume decreased by 3,820 lots to 12,159 lots, and open interest decreased by 282 lots to 264,000 lots. Last Friday, LME zinc formed a small bullish candlestick with a long upper shadow, with multiple moving averages above acting as resistance and the lower Bollinger Band below providing support. Last Friday, as the Fed Chairman declined to provide a rate hike roadmap, expectations for an October rate hike diminished, the US dollar weakened, and LME zinc closed higher.

Last Friday, the most-traded SHFE zinc 2612 contract opened at 25,530 yuan/mt. In early trading, SHFE zinc quickly dipped to an intraday low of 25,420 yuan/mt. Subsequently, short covering drove SHFE zinc sharply higher to a high of 25,680 yuan/mt. Bullish momentum then weakened, and SHFE zinc pulled back in choppy trade, with its center shifting below the daily average line. It ultimately settled up at 25,555 yuan/mt, up 115 yuan/mt, or 0.45%. Trading volume decreased by 47,151 lots to 41,605 lots, and open interest decreased by 2,043 lots to 103,000 lots. Last Friday, SHFE zinc formed a small bullish candlestick with a long upper shadow, with the daily candlestick's center edging slightly higher and the KDJ gap narrowing. As zinc prices had previously fallen to around 25,200 yuan/mt, downstream purchasing sentiment improved and social inventory destocking occurred. Destocking is expected to continue this week, with the zinc price center edging up slightly.

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

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