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

Published: May 19, 2026 08:38

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[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.

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