Fundamentals Show Both Bullish and Bearish Factors, SHFE Zinc to Maintain Fluctuating Trend [SMM Zinc Morning Comment]

Published: May 19, 2026 08:38

Save

[SMM Zinc Morning Comment: Bullish and Bearish Factors Coexist in Fundamentals, SHFE Zinc Maintains Fluctuating Trend] Overnight, the most-traded SHFE zinc 2607 contract opened at 24,800 yuan/mt. At the beginning of the session, SHFE zinc touched a high of 24,800 yuan/mt. After the opening, SHFE zinc quickly pulled back to near the daily average line, hitting a low of 24,605 yuan/mt. SHFE zinc then moved sideways around the daily average line, eventually closing lower at 24,690 yuan/mt.

SMM News on May 19:

Overnight, LME zinc opened at $3,531/mt. In early trading, LME zinc briefly pulled back and probed a low of $3,495.5/mt. It then fluctuated and rebounded from the lows, touching a high of $3,554/mt during the session. Subsequently, LME zinc fluctuated downward to near the daily moving average and finally closed down at $3,515.5/mt, a decline of $23/mt or 0.65%. Trading volume decreased to 10,662 lots, and open interest increased by 1,071 lots to 244,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the 10-day moving average below providing support. On the macro front, the situation in the Middle East has not yet ended, but the US dollar index retreated from highs, and the downward trend of LME zinc paused. Coupled with LME zinc ingot inventory running persistently low, LME zinc is expected to maintain a fluctuating trend in the short term.

Overnight, the most-traded SHFE zinc 2607 contract opened at 24,800 yuan/mt. In early trading, SHFE zinc touched a high of 24,800 yuan/mt. After the opening, SHFE zinc quickly pulled back to near the daily moving average, probing a low of 24,605 yuan/mt. SHFE zinc then moved sideways around the daily moving average and finally closed down at 24,690 yuan/mt, a decline of 40 yuan/mt or 0.16%. Trading volume decreased to 23,997 lots, and open interest increased by 1,527 lots to 80,561 lots. Overnight, SHFE zinc recorded a bearish candlestick, with the 5-day moving average above forming resistance. On Monday, SMM zinc ingot social inventory continued to accumulate, and consumption continued to drag on zinc price trends. However, zinc concentrate TCs continued to decline, which overall still provided some support for zinc prices. Amid the tug-of-war between longs and shorts, SHFE zinc maintained a fluctuating trend.

Data source statement: Except for public information, all other data are processed by SMM based on public information, market communication, and relying on SMM's internal database model. They are for reference only and do 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

2 hours ago

Penoles Reports 15.6% Increase in Q1 2026 Zinc Production, Driven by Mine and Smelter Improvements

[Penoles Releases Q1 2026 Production Report] Penoles released its Q1 2026 production data. For the zinc mine segment, its zinc concentrates production reached 66,600 mt in the quarter, up 15.6% YoY, mainly driven by the resumption of operations at Tizapa and improved grades and recovery rates at Juanicipio, Sabinas, and Fresnillo. For the zinc smelting segment, its zinc production reached 48,100 mt in the quarter, up 14.7% YoY, primarily due to an increase in the volume of concentrates processed by the zinc smelter, which had undergone its annual planned maintenance shutdown in Q1 2025.

2 hours ago

Kaz Mineral Reports Q1 2026 Zinc Output Down Due to Planned Maintenance

[Kaz Mineral Disclosed Q1 2026 Production]Recently, Kaz Mineral disclosed its Q1 2026 production.Zinc in concentrate output of 10.4 kt was lower quarter-on-quarter, primarily reflecting reduced processing volumes at the East Region following planned maintenance at the Nikolayevsky concentrator in January.

2 hours ago

Gold Resource Reports Q1 2026 Production, Zinc Output Up 64%

[Zinc Concentrates Production Information] Gold Resource disclosed its Q1 2026 production. Its zinc metal content production was 1,143 mt during the quarter. Total ore processed during the quarter was 74,444 mt, an increase of 31% compared to the same period in 2025. Gold and silver production increased by 126% and 54%, respectively. Copper, lead, and zinc production also increased by 39%, 36%, and 64%, respectively.

2 hours ago