Ore Supply Disruptions Occur Frequently, SHFE Zinc Center Continues to Move Up [SMM Zinc Morning Comment]

Published: Aug 6, 2026 08:41

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[SMM Zinc Morning Comment: Frequent Ore Supply Disruptions, SHFE Zinc Center Continues to Move Higher] Overnight, the most-traded SHFE zinc 2609 contract opened at 25425 yuan/mt. After the open, SHFE zinc briefly rose in choppy trading to a high of 25680 yuan/mt, then pulled back from the high to near the daily average line, and subsequently moved sideways in a narrow range around the daily average line, touching a low of 25405 yuan/mt. It finally closed up at 25645 yuan/mt..

SMM, August 6:

Overnight, LME zinc opened at $3,662/mt. After opening, it rose steadily, dipping to $3,655.5/mt in early trading and reaching a high of $3,748/mt towards the close, eventually closing up at $3,745.5/mt, up $84.5/mt, a gain of 2.31%. Trading volume increased to 13,736 lots and open interest decreased by 1,162 lots to 247,000 lots. Overnight, LME zinc formed a bullish candlestick, with support from the 5-day moving average below. On the macro front, the US ADP employment data hit a new low for the year, the US dollar index declined, and coupled with the continuous decline in LME zinc ingot inventory and the LME Cash-3M backwardation structure staying high, bears reduced their positions. LME zinc surged again, with its overall center shifting markedly higher.

Overnight, the most-traded SHFE zinc 2609 contract opened at 25,425 yuan/mt. After opening, SHFE zinc briefly consolidated higher, reaching a high of 25,680 yuan/mt, then retreated from highs to near the daily moving average. It subsequently moved sideways around the daily moving average, dipping to 25,405 yuan/mt, and finally closed up at 25,645 yuan/mt, up 220 yuan/mt, a gain of 0.87%. Trading volume increased to 87,032 lots and open interest increased by 3,879 lots to 124,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with support from the upper Bollinger Band. Recent frequent supply disruptions in domestic mines and persistent expectations of tight domestic zinc concentrates supply led bulls to continue adding positions. SHFE zinc continued to rise in the night session and is expected to stay high in the short term.

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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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