LME Drove SHFE Lower, SHFE Zinc Declined [SMM Zinc Morning Comment]

Published: Mar 18, 2026 08:59

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[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2605 contract opened at 23,680 yuan/mt. In early trading, SHFE zinc briefly rose to a high of 23,685 yuan/mt, after which bears added to their positions and SHFE zinc fluctuated downward all the way, hitting a low of 23,440 yuan/mt near the close. It finally closed down at 23,455 yuan/mt, down 275 yuan/mt, or 1.16%. Trading volume fell to 39,416 lots, and open interest increased by 10,738 lots to 91,209 lots.

SMM News, March 17:

Overnight, LME zinc opened at $3,277/mt. In early trading, LME zinc briefly rose to a high of $3,293/mt, after which bulls reduced positions and LME zinc fluctuated downward all the way, hitting a low of $3,210/mt during the night session. Its center then slightly rebounded, and it finally closed down at $3,233/mt, down $46/mt, a decline of 1.4%. Trading volume increased to 13,404 lots, while open interest fell by 3,868 lots to 214,000 lots. Overnight, LME zinc recorded a large bearish candlestick. Macro side, the Iran conflict continued to escalate, and the market awaited the policy decision the US Fed is about to make. Fundamentally, a large amount of LME zinc was shipped to delivery warehouses, and fundamentals provided weak support for LME zinc. As LME zinc broke lower, it is expected to remain in the doldrums today.

Overnight, the most-traded SHFE zinc 2605 contract opened at 23,680 yuan/mt. In early trading, SHFE zinc briefly rose to a high of 23,685 yuan/mt, after which bears added positions and SHFE zinc fluctuated downward throughout the session, hitting a low of 23,440 yuan/mt near the close, and finally closing down at 23,455 yuan/mt, down 275 yuan/mt, a decline of 1.16%. Trading volume fell to 39,416 lots, while open interest increased by 10,738 lots to 91,209 lots. Overnight, SHFE zinc posted a four-day losing streak. Macro sentiment remained choppy, China zinc ingot inventory continued its buildup to a high level in recent years, and the increase in overseas LME zinc ingot inventory eased tight supply. The external market dragged down the SHFE market, and SHFE zinc is expected to remain in the doldrums today.

Data source statement: Except for public information, all other data was processed and derived by SMM based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute decision-making advice.

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.

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