Oversupply in China Drives SHFE Zinc Lower [SMM Daily Zinc Commentary]

Published: Mar 13, 2026 16:42

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[China Oversupply Weighed on SHFE Zinc]: The most-traded SHFE zinc 2604 contract opened at 24,250 yuan/mt. In early trading, bears added to open interest, and SHFE zinc fluctuated downward all the way, falling to a low below 24,140 yuan/mt. Its center then slightly rebounded, and it finally closed down at 24,140 yuan/mt, down 160 yuan/mt, or 0.66. Trading volume increased to 85,941 lots, while open interest rose by 2,465 lots to 75,191 lots.

SMM News, March 13:

The most-traded SHFE zinc 2604 contract opened at 24,250 yuan/mt. In early trading, bears added to open interest, and SHFE zinc fluctuated downward all the way, touching a low below 24,140 yuan/mt. It then saw a slight rebound in its center and finally closed down at 24,140 yuan/mt, down 160 yuan/mt, or 0.66%. Trading volume increased to 85,941 lots, and open interest rose by 2,465 lots to 75,191 lots. SHFE zinc posted a bearish candlestick. Geopolitical issues suppressed expectations for interest rate cuts, putting zinc ingot prices under pressure, while inventory in China remained high and supply pressure was still heavy. SHFE zinc weakened, and SHFE zinc is expected to remain in the doldrums at night.

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