Continuous Supply Disruptions Outside China Drive Sustained Rally in SHFE and LME Zinc Prices [SMM Market Review - Zinc Price Weekly Comment]

Published: May 15, 2026 15:13

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[Continuous Overseas Supply Disruptions Drive SHFE and LME Zinc Prices Higher] At the beginning of the week, LME zinc continued the fluctuating trend from last week; subsequently, zinc prices edged down as the U.S.-Iran peace agreement was not reached; however, the ongoing fermentation of Peru's energy emergency decree drove a broad rally in non-ferrous metals, and LME zinc rebounded; immediately after, Zazzinc's lead-zinc mine in Kazakhstan reduced its operating load following an accident, and LME zinc continued to surge......

LME zinc: At the beginning of the week, LME zinc continued the fluctuating trend from last week; subsequently, zinc prices edged down as the US-Iran peace agreement was not reached; however, the ongoing fermentation of Peru's energy emergency decree boosted a broad rally in non-ferrous metals, and LME zinc rebounded; immediately after, Kazakhstan's Zazzinc reduced load operations at its lead-zinc mine following an accident, and LME zinc continued to rally; then, the US April PPI surged to a four-year high, intensifying inflation concerns and to some extent hindering zinc price rise, with the market maintaining a fluctuating trend; however, the closure of Peru's Cajamarquilla zinc smelter due to a fire heated up tight supply sentiment, pushing LME zinc to a three-year high; approaching the weekend, coexisting inflation concerns and a strong US dollar, coupled with ongoing regional disputes, caused zinc prices to edge down. As of 15:00 this Friday, LME zinc was recorded at $3,534/mt, up $93/mt, a gain of 2.70%.

SHFE zinc: At the beginning of the week, SHFE zinc maintained a sideways movement; subsequently, driven by the disturbance from Peru's energy crisis emergency decree and boosted by LME, SHFE zinc rose in tandem, but as domestic inventory continued to increase and downstream consumption showed mediocre performance, SHFE zinc's upward push was blocked and pulled back slightly; then, as LME continued to rally driven by ex-China mine-side disturbances, SHFE zinc opened higher with a gap, but constrained by the oversupply fundamentals in the Chinese market, SHFE zinc lacked bottom support and maintained a fluctuating trend; subsequently, affected by the temporary closure of a Peruvian zinc smelter due to fire, market sentiment was disturbed again, and SHFE zinc continued to open higher with a gap, but as China's zinc inventory kept accumulating, SHFE zinc was pressured downward. As of 15:00 this Friday, SHFE zinc was recorded at 24,690 yuan/mt, up 415 yuan/mt, a gain of 1.71%.

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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