Market Concerns Over Ore Supply, SHFE Zinc Continued to Rise [SMM Zinc Morning Comment]

Published: May 14, 2026 08:52

Save

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2606 contract opened at 24,830 yuan/mt. At the beginning of the session, bulls increased open interest, and SHFE zinc fluctuated upward. Toward the end of the session, after touching a high of 24,970 yuan/mt, upward momentum weakened and the center shifted lower with range-bound trading. It finally closed up at 24,915 yuan/mt, gaining 85 yuan/mt or 0.34%. Trading volume fell to 50,281 lots, and open interest increased by 132 lots to 91,706 lots.

Overnight, LME zinc opened at $3,536/mt. At the start of the session, a tug-of-war between longs and shorts ensued, and LME zinc swung wildly along the daily moving average. Entering the night session, it briefly dipped to a low of $3,524.5/mt. Subsequently, bulls increased their positions, and LME zinc rallied to a multi-year high, touching $3,582.5/mt. The center then pulled back slightly, ultimately closing up at $3,552/mt, up $19.5/mt or 0.55%. Trading volume rose to 15,506 lots, and open interest increased by 488 lots to 242,000 lots. Overnight, LME zinc posted a small bullish candlestick. Inflation accelerated during the Iran war, and expectations for US Fed interest rate hikes within the year heated up. However, trading sentiment around tight supply and rising costs continued to strengthen, and LME zinc continued to rise. LME zinc is expected to hold up well today.

Overnight, the most-traded SHFE zinc 2606 contract opened at 24,830 yuan/mt. At the start of the session, bulls increased their positions, and SHFE zinc fluctuated upward, touching a high of 24,970 yuan/mt near the end of the session. It then lost upward momentum and the center shifted lower into a range-bound pattern, ultimately closing up at 24,915 yuan/mt, up 85 yuan/mt or 0.34%. Trading volume fell to 50,281 lots, and open interest increased by 132 lots to 91,706 lots. Overnight, SHFE zinc posted a small bullish candlestick. The market remained concerned about ore supply, and zinc concentrate TCs stayed at low levels. Driven by LME, SHFE zinc continued to rise. However, consumption remained relatively weak, and domestic destocking fell short of expectations, with pressure still lingering above. SHFE zinc is expected to hold up well today.

Data source disclaimer: Data other than publicly available information is derived from public information, market communication, and SMM's internal database models, processed by SMM 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.

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

Nexa Resources' Zinc Smelter in Peru Suspended Due to Accident]

On May 13, 2026, Nexa Resources announced that an accident occurred in the morning at the Cajamarquilla zinc smelter in Peru, triggering a fire. The fire has been brought under control, and operations have been suspended. It was reported that no fatalities resulted from the incident. Some infrastructure at the smelter sustained damage. Based on currently available information, the company expects the incident will not have a significant impact. Last night, LME zinc prices surged to $3,582.5/mt at one point, hitting a new high since August 2022. According to SMM, Cajamarquilla is the largest zinc smelter in Latin America, with refined zinc production reaching 345,300 mt in 2025, the highest output since commissioning. The actual impact going forward still requires further monitoring.

1 hour ago

Market Concerns Over Supply Continued to Intensify, LME Zinc Rose to Multi-Year Highs [SMM Morning Meeting Summary]

[SMM Morning Meeting Minutes: Growing Market Concerns over Supply Push LME Zinc to Multi-Year Highs] LME zinc opened at $3,536/mt during the overnight session. Early in the session, a tug-of-war between longs and shorts ensued, and LME zinc swung wildly along the daily average line. Entering the night session, it briefly dipped to a low of $3,524.5/mt. Bulls then increased open interest, driving LME zinc up to a multi-year high of $3,582.5/mt. The center subsequently pulled back slightly, and it ultimately closed higher at $3,552/mt, up $19.5/mt or 0.55%. Trading volume rose to 15,506 lots, and open interest increased by 488 lots to 242,000 lots.

1 hour ago

18 hours ago

Data: SHFE, DCE market movement (May 13)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 13 May , 2026

18 hours ago