LME Zinc Dips Slightly; SHFE and MCX Hold Firm

Key Takeaways

• LME Zinc Down Slightly: LME Zinc closed at $2,578/mt, down 0.33%, with today’s trading opening at $2,628/mt.
• SHFE Zinc Gains: SHFE’s 2506 contract increased 0.79% to 22,460 yuan/mt, showing bullish signals with rising volume and price support.
• MCX Zinc Holds Firm: Zinc on MCX closed up 0.22% at Rs 247.7, backed by US political uncertainty and a weaker USD.
• Supply and Spot Trends: Spot premiums in China stayed high, but slower downstream buying and fulfilled orders reduced fresh demand.
• Technical Outlook Stable: Support seen at Rs 246–244.4; resistance at Rs 249.2–250.8. Short covering and falling open interest indicate consolidation.

Zinc Prices:

• LME: As of 23/04/2025, LME zinc opened at $2,602/mt, reaching a high of $2,627/mt and low of $2,577/mt, and ultimately closing higher at $2,578/mt, down by $22/mt or 0.33%. Today, LME Zinc trading commenced at $2,628/mt.
• SHFE: Zinc 2506 contract opened at 22,400 yuan/mt. It rose to 22,635 yuan/mt as shorts exited, then dipped slightly as longs exited, closing at 22,460 yuan/mt—up 0.79% (175 yuan/mt). Volume rose to 218,000 lots; open interest fell by 3,102 to 127,000 lots. Bullish candlestick seen, with resistance at 20/60-day averages and support from lower Bollinger Band.
• MCX: Zinc closed up 0.22% at Rs 247.7, supported by a weaker USD and US political tensions. Criticism of Fed Chair Powell raised concerns over Fed independence, boosting base metal demand. China accused the US of “weaponizing tariffs,” adding to trade worries.
• China’s Q1 growth beat estimates, but zinc fundamentals remained mixed: March refined output jumped 14% MoM and 4% YoY, though Q1 output was still 3% lower YoY. Supply concerns grew with Nyrstar cutting 25% output at its Hobart smelter and possible slowdown at Red Dog Mine. Citi cut 2025 zinc forecast due to demand concerns from trade barriers.

Zinc Supply & Demand:

• LME Opening Stock - 192225| Live Warrants - 155825 | Cancelled Warrants - 36400
• LME: The mainstream transaction price of zinc in Guangdong was 22,835-23,120 yuan/mt. The mainstream brands quoted a premium of 450 yuan/mt against the 2506 contract and a premium of 20 yuan/mt against Shanghai spot cargo. The Shanghai-Guangdong price spread narrowed. In the first session, suppliers quoted premiums of 470-490 yuan/mt for Qilin, Mengzi, Danxia, and Lan zinc. In the second session, Mengzi and Danxia quoted premiums of 480-490 yuan/mt against the online price.
• Overall, the price center of zinc moved upward today, while spot premiums and discounts remained high. Downstream purchasing sentiment weakened, and the market trading pace slowed. As downstream companies had previously made low-price purchases, they are now picking up goods to fulfill orders. Additionally, pre-holiday stockpiling boosted overall sales for some traders.

Zinc News

• Zinc rises as weak dollar and US instability boosts safe-haven appeal.
• Australia's Zinc Oxide and Zinc Peroxide market volume projected to reach 55K tons, with market value expected to reach $228M by 2035.
• Incorporating Graphene-modified Mica and conductive Nickel particles for enhanced.
• Korea Zinc offices raided over probe into plan to sell new shares.

Expert Opinion

In experts’ opinion, technically, the zinc market is in a phase of short covering, with open interest falling by 16.19% to 1,636 as prices edged higher. Support is established at Rs 246, with further downside seen at Rs 244.4. On the upside, resistance is likely around Rs 249.2, and a breakout above could lift prices toward Rs 250.8.