During the week, the zinc ingot market in Guangdong underwent a contract rollover, with spot quotations officially switching from the 2603 contract to the 2604 contract. Against the backdrop of the SHFE zinc market maintaining a Contango structure, spot premiums and discounts for zinc ingots in Guangdong continued their downward trend after the rollover, further declining from -80 yuan/mt before the rollover to -125 yuan/mt today, highlighting persistent short-term downward pressure.

[SMM Zinc Morning Comment: SHFE Zinc Closed for Chinese New Year Holiday, Focus on Inventory Buildup During the Holiday] Overnight, LME zinc opened at $3,383/mt, and after opening, it fluctuated around the daily average line, reaching a high of $3,392/mt during the session. Subsequently, LME zinc experienced a pullback in the night session, failing to surge again after another attempt, and by the end of the session, it touched a low of $3,341.5/mt.

During the Chinese New Year break, LME zinc's price center first declined and then rose. The 40-day moving average consistently supported the daily candlestick of LME zinc. After opening, the price center of LME zinc pulled back, hitting a low of $3,253/mt before rebounding steadily. Overall, the price center recovered, and as of Friday's close, LME zinc settled at $3,378/mt, up $35.5/mt for the week, a gain of 1.06%.

[Zinc Price "Year-End Hurdle": Pre-Holiday Hedging and Post-Holiday Pace Management Suggestions]With the 2026 Chinese New Year approaching and the last trading week before the holiday, SMM has summarized several key points to focus on in the zinc market before and after the holiday:

[Ningbo Refined Zinc Market] During the week, spot supply in the Ningbo market was gradually consumed, traders reduced spot quotations, and spot premiums edged up. However, with futures maintaining a fluctuating trend throughout the week, downstream users mostly purchased as needed, resulting in overall spot trades being mediocre.

[SMM Flash News] This week, the SHFE/LME zinc price ratio fluctuated around 8.4, with the import window for zinc ingots remaining closed. Overseas, macro data showed a slowdown in both US employment and inflation, strengthening expectations for US Fed interest rate cuts within the year. The escalation of tensions in the Middle East exacerbated geopolitical risks, and the resurgence of US tariff disputes put continuous downward pressure on LME zinc.

[Inventory Continues to Accumulate, SHFE Zinc Falls Significantly]: The most-traded SHFE zinc 2507 contract opened at 22,220 yuan/mt. During the morning session, SHFE zinc fluctuated rangebound around the daily average line, reaching a high of 22,335 yuan/mt. Subsequently, in the afternoon session, SHFE zinc continued to decline, hitting a low of 21,855 yuan/mt near the close, and eventually closed down at 21,910 yuan/mt...

[TC Continues to Rebound, SHFE Zinc Price Center Moves Downward] The most-traded SHFE zinc 2507 contract opened at 22,320 yuan/mt. Early in the session, bulls reduced their positions, causing SHFE zinc to quickly decline and oscillate below the daily average line. During this period, it dipped to a low of 21,500 yuan/mt. The contract eventually closed down at 22,225 yuan/mt, a drop of 270 yuan/mt or 1.02%. Trading volume decreased to 182,000 lots, while open interest fell by 2,766 lots to 117,000 lots.

[Domestic Smelters Extend Maintenance Period, Zinc Prices Rise During the Week] At the beginning of the week, LME zinc market was closed for one day; subsequently, due to the lingering uncertainty surrounding Trump's tariff policies and the increasing likelihood of a delayed interest rate cut by the US Fed, LME zinc prices declined; then, as the US Conference Board's Consumer Confidence Index for May exceeded expectations and the US dollar index rose, while overseas inventories continued to decline, LME zinc maintained a fluctuating trend...

[SMM Zinc Morning Comment] Overnight, the LME zinc contract recorded a long lower shadow bullish candlestick, with the 5-day daily average providing support below. As the US CPI data fell short of expectations, the US dollar pulled back, and LME zinc prices rose.