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

3 hours ago

SHFE Zinc Posted a Five-Day Winning Streak, with Its Center Edging Up Slightly [SMM Zinc Morning Comment]

[SMM Zinc Morning Comment] Last Friday, SHFE zinc recorded a five-day winning streak, with support provided by the 5-day and 10-day daily average lines below. In April, routine maintenance at smelters increased, and inventory continued destocking, while zinc fundamentals improved......

3 hours ago

Zinc Fundamentals Improved, but Weak Macro Sentiment Limited Its Upside [SMM Morning Meeting Summary]

[SMM Morning Meeting Summary: Zinc Fundamentals Improved Slightly, but Weak Macro Sentiment Limited Its Gains] Last Friday, LME zinc posted a small bullish candlestick, with the 10-day moving average above acting as resistance. Although the risk of an escalation in the geopolitical conflict in the Middle East remained last Friday and macro sentiment was weak, concerns over mine-side energy supply arising from such an escalation also increased......

3 hours ago

Mar 27, 2026 15:59

Bullish and Bearish Factors Intertwined as SHFE and LME Zinc Prices Rose [SMM Market Review - Weekly Price Review]

[Mixed Bullish and Bearish Factors in the Market, SHFE and LME Zinc Prices Rose] At the beginning of the week, LME zinc continued last week's downward fluctuation trend; subsequently, the US dollar index dropped back slightly from its highs, and LME zinc rose; however, the ongoing escalation of the Middle East conflict, coupled with the renewed strength of the US dollar index, constrained the upside room for zinc prices, and the center of LME zinc gradually pulled back......

Mar 27, 2026 15:59