Latest Update in the SMM Zinc Market

Dear Visitors, Please be informed that our English website will suspend news updates during the upcoming Labour Day holiday. This suspension will be in effect from May 1 to May 5.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 30 Apr, 2025

["[Capital Exits Before Holiday, SHFE Zinc Falls During Daytime Trading]: The most-traded SHFE zinc 2506 contract opened at 22,560 yuan/mt. Early in the session, SHFE zinc reached a high of 22,575 yuan/mt. After the opening, SHFE zinc fluctuated downward throughout the session, hitting a low of 22,345 yuan/mt near the close. It eventually closed at 22,440 yuan/mt, down 110 yuan/mt..."]

["[Social inventory continues to decline due to pre-holiday inventory restocking and limited arrivals] According to SMM's communication and understanding, as of Wednesday (April 30), the total zinc ingot inventory across seven locations tracked by SMM was 77,000 mt, a decrease of 8,800 mt from April 24 and a decrease of 8,900 mt from April 28. Domestic inventory recorded a decline..."]

[Operating Rates of Die-Casting Zinc Alloy Producers Decline as Labour Day Holiday Approaches] This week, the operating rate of die-casting zinc alloy producers was recorded at 49.01%, down 9.97 percentage points WoW. On the inventory side, zinc prices maintained a fluctuating trend this week. However, better outflows from warehouses for some enterprises led to a decrease in inventory, prompting an increase in raw material purchases. Meanwhile, enterprises that had previously purchased at low prices gradually picked up goods, resulting in a slight increase in overall raw material inventory. In terms of finished product inventories, most die-casting zinc alloy enterprises had holiday arrangements ranging from 1 to 7 days during the Labour Day holiday, leading to a MoM increase in finished product inventories...

【SHFE/LME Price Ratio Continues to Fluctuate Around 8.6, Zinc Ingot Import Window Opens】: This week, the SHFE/LME price ratio fluctuated around 8.6, and the zinc ingot import window opened. The final value of the University of Michigan Consumer Sentiment Index for April in the US, released last Friday, was higher than the previous value and expectations, leading to a continued decline in London zinc prices.

[Few Enterprises Take Holidays in the Market, Zinc Oxide Operating Rate Declines Slightly] This week, the zinc oxide operating rate was recorded at 58.57%, down 1.2% WoW. On the raw material side, zinc prices maintained a fluctuating trend this week, with most zinc oxide enterprises primarily engaging in just-in-time procurement. However, due to holiday arrangements for some zinc oxide enterprises during the week, raw material inventories increased WoW, and pre-holiday inventory stockpiling also led to an overall increase in finished product inventories for enterprises. ......

["[Uncertainty in International Trade Persists, Zinc Prices Maintain Fluctuating Trend This Week] At the beginning of the week, LME zinc continued its downward trend from last week, influenced by the fact that the final value of the University of Michigan's consumer sentiment index for the US in April was higher than the previous value and the expected value. Subsequently, positive macro news from China drove LME zinc slightly higher. Then, Trump stated to the media that he believed no red lines would change the tariff policy, intensifying market concerns about trade. Meanwhile, the Dallas Fed's business activity index for the US in April was lower than the previous value and the expected value, with the overall business activity index sharply declining to -35.8, marking the third consecutive month of decline. Market risk-averse sentiment emerged, and under the influence of multiple factors, LME zinc maintained a fluctuating trend..."]