Insufficient fundamental support, SHFE zinc retreats from highs [SMM Zinc Futures Review]

Published: Jan 16, 2026 15:07

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[Insufficient Fundamental Support, SHFE Zinc Retreats from Highs]: The most-traded SHFE zinc 2603 contract opened at 25,010 yuan/mt, touched a high of 25,160 yuan/mt early in the session, then fluctuated downward throughout the day. Approaching the close, it hit a low of 24,660 yuan/mt, and finally settled at 24,750 yuan/mt, down 375 yuan/mt, a decline of 1.49%.

SMM Jan. 16:

The most-traded SHFE zinc 2603 contract opened at 25,010 yuan/mt, touched a high of 25,160 yuan/mt early in the session, then fluctuated downward, and hit a low of 24,660 yuan/mt near the close, finally closing down 375 yuan/mt, or 1.49%, at 24,750 yuan/mt. Trading volume fell to 153,000 lots, and open interest decreased by 5,236 lots to 142,000 lots. SHFE zinc formed a bearish candlestick, suppressed by the middle Bollinger Band, as funds took profits at highs and bulls reduced their positions. On the fundamentals side, downstream orders were weak during the off-season, with some galvanizing enterprises already starting holidays, providing insufficient support for zinc prices, causing SHFE zinc to retreat from highs.

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