Zinc supply remains loose, SHFE zinc maintains fluctuating trend [[SMM Zinc Morning Comment]]

Published: May 8, 2025 08:41

Save

[SMM Zinc Morning Comment: Zinc Supply Remains Loose, SHFE Zinc Maintains Fluctuating Trend] Overnight, LME zinc opened at $2,638/mt. In the early session, LME zinc rose to a high of $2,658/mt, then quickly pulled back and began to fluctuate. During the mid-session, LME zinc rebounded again above the daily average line, but declined again near the end of the session, touching a low of $2,613/mt during the period. It finally closed down at $2,613/mt, down $13.5/mt, or 0.51%...

SMM, May 8:

Overnight, LME zinc opened at $2,638/mt. In the early session, LME zinc rose to a high of $2,658/mt before quickly pulling back and entering a fluctuating trend. During the mid-session, LME zinc rebounded again above the daily average line, but declined again towards the end of the session, hitting a low of $2,613/mt. It eventually closed down at $2,613/mt, down $13.5/mt or 0.51%. Trading volume decreased to 10,498 lots, while open interest increased by 2,309 lots to 211,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the upper Bollinger Band forming resistance. The market remained cautious about the international trade situation, with no significant improvement in macro sentiment. Additionally, the US dollar index continued to strengthen, putting downward pressure on LME zinc.

Overnight, the most-traded SHFE zinc 2506 contract opened at 22,245 yuan/mt. In the early session, SHFE zinc quickly surged to a high of 22,455 yuan/mt before continuously pulling back from the highs. It hit a low of 22,210 yuan/mt during the night session and then maintained a fluctuating trend. It eventually closed up at 22,240 yuan/mt, up 30 yuan/mt or 0.14%. Trading volume decreased to 80,117 lots, while open interest increased by 5,163 lots to 122,000 lots. Overnight, SHFE zinc recorded a long upper shadow bearish candlestick, with the 10-day moving average forming resistance. With the inflow and replenishment of imported zinc ingots, the market's expectation for loose zinc ingot supply persisted, while consumption performance was mediocre. The fundamentals provided insufficient support for zinc prices, and SHFE zinc maintained a fluctuating trend.

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

15 hours ago

South32 Raises Hermosa Taylor Capex by Over 50%, Delays Production to 2028 H1

On April 30th, South32 raised the development cost estimate for the Taylor deposit at its Hermosa zinc-silver project in Arizona, US, and delayed the timeline. First-stage capital expenditure has increased by more than 50%, from $2.2 billion in the 2024 FS to $3.3 billion. First production has been delayed by one year to H2 FY2028, full production has also been pushed back to FY2031. Cost increase was mainly due to contractor underperformance, slower-than-expected construction productivity, scope changes, inflation, US tariffs and higher input costs. Progress on a key ventilation shaft is the main bottleneck now. But the company also noted that ore reserves at Taylor increased by 52%, mineral resources rose by 10%, extending the expected mine life from 28 years to around 33 years.

15 hours ago

Apr 30, 2026 19:11

Monthly Production Declined: Refined Zinc Faces Dual Pressure from Raw Material Supply and Costs [SMM Analysis]

[Monthly Production Declined: Refined Zinc Faces Dual Pressure from Raw Material Supply and Costs] Overall, refined zinc production release in April and May fell short of expectations, mainly because as ex-China mine disruptions increased and China's ore recovery remained limited, TCs accelerated downward. Imported TCs have already dropped to $39.25/dmt, while China's weekly TCs broke below historical lows to 850 yuan/mt in metal content...

Apr 30, 2026 19:11

Apr 30, 2026 17:15

Tibet Huayu Reports 2025 Annual Growth in Zinc and Lead-Antimony, Decline in Gold Production

[Tibet Huayu 2025 Annual Report Released] On April 29, Tibet Huayu released its 2025 annual report. In 2025, the company completed zinc concentrates production of 21,300 mt in metal content, up 9.07% YoY, lead-antimony concentrates with silver content production of 19,000 mt in metal content, up 14.56% YoY, and gold concentrates of 1,002 kg, down 46.66% YoY.

Apr 30, 2026 17:15