As of May 26, the Shanghai-LME zinc price ratio stood at 6.97, continuing its downward trend from 7.4 recorded in late March, which has led to a widening import loss of refined zinc ingots in China. According to calculations by Shanghai Metals Market (SMM), the current import loss of China’s refined zinc ingots has expanded to approximately RMB 3,800 per metric ton of metal.

[Geopolitical Tensions Fluctuate as SHFE and LME Zinc Prices Fluctuate Upward] At the beginning of the week, the tug-of-war between longs and shorts intensified. On the macro front, the Middle East situation remained unresolved and market uncertainty persisted, but the US dollar index retreated from highs. Combined with persistently low ex-China zinc ingot inventory, LME zinc maintained a fluctuating trend......

[Will Refined Zinc Maintain Net Imports in April with Exports Increasing in May?] According to the latest customs data, refined zinc imports in April 2026 were 6,000 mt, down 8,400 mt or 58.27%% MoM, and down 78.62% YoY. Cumulative refined zinc imports from January to April were 49,000 mt, down 61.98% YoY cumulatively. Refined zinc exports in April were 3,900 mt, down 16.22% MoM and up 59.21% YoY.

[Continuous Overseas Supply Disruptions Drive SHFE and LME Zinc Prices Higher] At the beginning of the week, LME zinc continued the fluctuating trend from last week; subsequently, zinc prices edged down as the U.S.-Iran peace agreement was not reached; however, the ongoing fermentation of Peru's energy emergency decree drove a broad rally in non-ferrous metals, and LME zinc rebounded; immediately after, Zazzinc's lead-zinc mine in Kazakhstan reduced its operating load following an accident, and LME zinc continued to surge......

On May 13, 2026, Nexa Resources announced that an accident occurred in the morning at the Cajamarquilla zinc smelter in Peru, triggering a fire. The fire has been brought under control, and operations have been suspended. It was reported that no fatalities resulted from the incident. Some infrastructure at the smelter sustained damage. Based on currently available information, the company expects the incident will not have a significant impact. Last night, LME zinc prices surged to $3,582.5/mt at one point, hitting a new high since August 2022. According to SMM, Cajamarquilla is the largest zinc smelter in Latin America, with refined zinc production reaching 345,300 mt in 2025, the highest output since commissioning. The actual impact going forward still requires further monitoring.

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2606 contract opened higher with a gap at 24,350 yuan/mt. At the beginning of the session, SHFE zinc briefly rose to a high of 24,410 yuan/mt, then pulled back under pressure. Near the end of the session, it moved below the daily average line to a low of 24,280 yuan/mt, ultimately closing up at 24,315 yuan/mt, up 30 yuan/mt, a gain of 0.12%. Trading volume decreased to 41,272 lots, and open interest increased by 895 lots to 90,766 lots.

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2606 contract opened lower with a gap at 24,180 yuan/mt. At the beginning of the session, SHFE zinc fluctuated downward with small fluctuations to a low of 24,125 yuan/mt. Subsequently, bears reduced their open interest, and the price fluctuated upward above the daily average line to a high of 24,250 yuan/mt. At the end of the session, it moved sideways, ultimately closing lower at 24,205 yuan/mt, down 45 yuan/mt or 0.19%. Trading volume decreased to 37,900 lots, and open interest decreased by 1,278 lots to 92,124 lots.

[SMM Zinc Morning Comment: LME Zinc Prices Boosted SHFE Zinc, SHFE Zinc Opened Higher with a Gap] The most-traded SHFE zinc 2606 contract opened at 24,360 yuan/mt. After the opening, SHFE zinc hovered at highs, dipping to a low of 24,300 yuan/mt in early trading and reaching a high of 24,460 yuan/mt during the session. It ultimately closed higher at 24,395 yuan/mt, up 145 yuan/mt or 0.6%. Trading volume increased to 57,090 lots, and open interest rose by 7,625 lots to 98,700 lots.

[SMM Zinc Morning Meeting Minutes: LME Zinc Ingot Inventory Continued to Decline, Zinc Prices Surged During the Day]: Overnight, LME zinc opened at $3,414.5/mt. After the opening, LME zinc dipped slightly, touching a low of $3,387.5/mt before quickly rising, reaching an intraday high of $3,454.5/mt. LME zinc then fluctuated at highs before pulling back, ultimately closing higher at $3,437/mt...

[SMM Zinc Morning Comment: SHFE Zinc Hovered at Highs, Export Window Worth Watching] Overnight, the most-traded SHFE zinc 2606 contract opened at 24,290 yuan/mt. At the beginning of the session, SHFE zinc touched a high of 24,300 yuan/mt before fluctuating downward, hitting an intraday low of 24,105 yuan/mt. SHFE zinc then maintained a fluctuating trend and eventually closed higher at 24,180 yuan/mt, up 65 yuan/mt or 0.27%, with trading volume rising to 42,286 lots..