Significant Inventory Pressure Continued to Cap Zinc Prices on the Upside [SMM Zinc Brief Review]

Published: Mar 17, 2026 16:27

Save

[Heavy Inventory Pressure Continues to Cap Zinc Prices on the Upside] The most-traded SHFE zinc 2605 contract opened at 23,915 yuan/mt. In early trading, as bears reduced positions, SHFE zinc gradually rose to above the daily average line and touched a high of 24,055 yuan/mt. Later, as bears added positions, SHFE zinc gradually fell below the daily average line and hit a low of 23,720 yuan/mt, finally closing down at 23,730 yuan/mt.....

SMM News, March 17: The most-traded SHFE zinc 2605 contract opened at 23,915 yuan/mt. In early trading, bears reduced open interest, and SHFE zinc gradually rose to above the daily average line, hitting a high of 24,055 yuan/mt. Subsequently, bears increased open interest, and SHFE zinc gradually fell to below the daily average line, touching a low of 23,720 yuan/mt. It finally closed lower at 23,730 yuan/mt, down 180 yuan/mt, or 0.75. Trading volume increased to 41,320 lots, and open interest increased by 4,985 lots to 80,471 lots. SHFE zinc recorded a bearish candlestick, with the 10-day and 40-day moving averages above forming resistance. Currently, zinc ingot inventory in China continues to build up, and heavy inventory pressure is suppressing the rise in zinc prices. Downstream consumption showed a mediocre performance, and coupled with regional geopolitical tensions, the center of SHFE zinc continued to move lower.

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

1 hour ago

Gold Resource Reports Q4 2025 Zinc Production, Sees Decline in Base Metals Output

[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.

1 hour ago

Peru's Zinc Concentrates Output Down 19.3% MoM, Up 14.7% YoY in January 2026

[Peru Zinc Concentrates Production Information] According to data from Peru’s mining statistical bulletin, Peru’s zinc concentrates production was 105,300 mt in metal content in January 2026, down 19.3% MoM and up 14.7% YoY.

1 hour ago

Daliang Zinc Mine Launches 100,000 mt/year Mining and Beneficiation Project in Guizhou

According to reports, on March 11, the commissioning ceremony for the 100,000 mt/year mining and beneficiation project at the Daliang zinc mine in Duyun, Guizhou was held, marking the official launch of the first integrated mining and beneficiation pilot demonstration project of the Guizhou Provincial Institute of Geology and Mineral Resources, adding new momentum to the effective implementation of Guizhou Province’s strategy of “developing rich ore resources with precision.” Reportedly, the project was led by the provincial institute of geology and mineral resources, with cumulative investment of about 200 million yuan, and included a mine with annual capacity of 100,000 mt and a beneficiation plant with annual processing capacity of 150,000 mt.

1 hour ago