Zinc Prices Show Diverging Trends Amid Falling LME Stocks and Weak Demand
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Zinc prices showed mixed trends across LME, SHFE, and MCX. LME stocks continued to fall, signaling tighter supply, but weak demand—especially in construction—keeps overall sentiment bearish. SHFE zinc gained slightly on supply expectations. MCX futures dipped below previous close, reflecting domestic pressure and a cautious global outlook.
Key Highlights:
- LME zinc holds firm at $2,727/mt amid falling inventories
- SHFE zinc rises slightly due to falling treatment costs
- MCX zinc under pressure at ₹262.95/kg amid domestic demand slump
- Zinc market remains bearish due to weak construction sector
Zinc Price Snapshot
- LME: As of today, LME zinc opened at $2,728/mt, reaching a high of $2,734.5/mt and a low of $2,718.5/mt, and is currently trading around $2,727/mt, up by 0.24%.
- SHFE: The most-traded SHFE zinc 2508 contract recently closed at 22,440 yuan/mt, up by 55 yuan/mt or 0.25%, with an intraday high of 22,475 yuan/mt.
- MCX: As of today, MCX Zinc futures are trading at ₹262.95/kg. The day’s range is between ₹262.05/kg and ₹265.60/kg, down from a previous close of ₹267.55/kg.
Demand-Supply Outlook
- LME Opening Stock – 112,675 mt (down from 158,225 mt in March 2025).
- SHFE: Zinc treatment charges stand at $78.75/dmt, reflecting higher concentrate supply. Weak downstream demand continues to pressure prices.
- MCX: Prices reflect a downtrend influenced by falling LME inventories, decreased demand in the construction sector, and global supply balancing.
- Open Interest: ~3,259 contracts
- Volume: ~14,845 lots
ILZSG Outlook for 2025:
a. Global refined zinc demand: 13.64 Mt (+1.0%)
b. Global refined zinc production: 13.73 Mt (+1.8%)
Market News Highlights
- SHFE zinc rose on supply expectations amid falling treatment charges.
- LME zinc saw modest gains as the US dollar weakened.
- Inventories at LME continue to decline, indicating tighter spot supply.
- Bearish sentiment persists due to low downstream consumption, especially in construction.
Expert Opinion and Market Outlook
Zinc finds support at ₹262.0–₹262.7, with further downside potential toward ₹260.0. Resistance is seen at ₹265.8–₹266.0, and a breakout could push prices toward ₹268–₹269/kg.
Zinc Ingots
Copper Cathode
GI Coil
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