SHFE Zinc to Remain Range-Bound (2017-5-15)

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2605 contract opened lower with a gap at 22,350 yuan/mt, the intraday low. Subsequently, bulls added to open interest, and SHFE zinc fluctuated upward all the way, touching a high of 22,940 yuan/mt near the close and finally closing up at 22,860 yuan/mt, up 155 yuan/mt, or 0.68%. Trading volume fell to 93,582 lots, and open interest increased by 852 lots to 105,000 lots.

[SMM Morning Meeting Summary: The Market Bet on a US Fed Rate Hike, and LME Zinc Came Under Pressure] Overnight, LME zinc opened at $3,132.5/mt. In early trading, LME zinc briefly rose to a high of $3,136/mt before bears increased their positions, sending LME zinc fluctuating downward all the way. It touched a low of $3,125/mt in the night session, after which its center rebounded, and it finally closed down at $3,073.5/mt, down $59/mt, or 1.88. Trading volume increased to 18,995 lots, and open interest rose by 607 lots to 209,000 lots.

[Zinc Concentrates Production Information] Gold Resource disclosed its production for Q4 2025, during which its zinc metal production was 750 mt. In 2025, its copper, lead, and zinc production fell 59%, 56%, and 54%, respectively, from 2024. These declines mainly reflected the sequencing of mining into portions of the mineralized system with a relatively higher proportion of precious metals and lower base metal content than in the previous year.