SMM zinc morning comments: LME zinc remained rangebound

Published: Mar 21, 2024 10:02

Save

Overnight, LME zinc prices opened at US$2,500/ton and dropped to a low of US$2,494/ton during European trading, finally closing at US$2,523/ton, up US$21.5/ton, or 0.86%. Trading volume decreased to 6211 lots, and open interest decreased by 6957 lots to 221,000 lots. LME zinc stocks increased by 3325 mt or 1.24% to 270525 mt overnight. It is reported that Volcan will stop production at its three mines in Peru from Tuesday for up to 30 days, with an estimated impact of about 8,000 tons. In addition, MBC Mining Company will resume the KZK zinc-lead-copper project, with an annual output of 235 million pounds of zinc.

SHFE 2405 zinc opened at 21170 yuan/mt overnight and rose to a high of 21250 yuan/mt. The contract closed at 21195 yuan/mt, up 10 yuan/mt or 0.05%. Transaction volume decreased to 34936 lots, and open interest decreased by 307 lots to 103,000 lots. Fed interest rate cuts are still expected, and the weak supply and demand have not changed significantly yet. Zinc prices are consolidating at a low level.

Market review

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

5 hours ago

South32 Raises Hermosa Taylor Capex by Over 50%, Delays Production to 2028 H1

On April 30th, South32 raised the development cost estimate for the Taylor deposit at its Hermosa zinc-silver project in Arizona, US, and delayed the timeline. First-stage capital expenditure has increased by more than 50%, from $2.2 billion in the 2024 FS to $3.3 billion. First production has been delayed by one year to H2 FY2028, full production has also been pushed back to FY2031. Cost increase was mainly due to contractor underperformance, slower-than-expected construction productivity, scope changes, inflation, US tariffs and higher input costs. Progress on a key ventilation shaft is the main bottleneck now. But the company also noted that ore reserves at Taylor increased by 52%, mineral resources rose by 10%, extending the expected mine life from 28 years to around 33 years.

5 hours ago

Apr 30, 2026 19:11

Monthly Production Declined: Refined Zinc Faces Dual Pressure from Raw Material Supply and Costs [SMM Analysis]

[Monthly Production Declined: Refined Zinc Faces Dual Pressure from Raw Material Supply and Costs] Overall, refined zinc production release in April and May fell short of expectations, mainly because as ex-China mine disruptions increased and China's ore recovery remained limited, TCs accelerated downward. Imported TCs have already dropped to $39.25/dmt, while China's weekly TCs broke below historical lows to 850 yuan/mt in metal content...

Apr 30, 2026 19:11

Apr 30, 2026 17:15

Tibet Huayu Reports 2025 Annual Growth in Zinc and Lead-Antimony, Decline in Gold Production

[Tibet Huayu 2025 Annual Report Released] On April 29, Tibet Huayu released its 2025 annual report. In 2025, the company completed zinc concentrates production of 21,300 mt in metal content, up 9.07% YoY, lead-antimony concentrates with silver content production of 19,000 mt in metal content, up 14.56% YoY, and gold concentrates of 1,002 kg, down 46.66% YoY.

Apr 30, 2026 17:15