Zinc prices staged a notable recovery on October 11, 2026, as bearish traders reduced their positions across both London Metal Exchange and Shanghai Futures Exchange platforms, according to the SMM Zinc Morning Meeting Summary. On the LME, zinc opened at $3,718 per metric ton and climbed throughout the session, touching an intraday low of $3,710/mt before surging to a high of $3,811.5/mt near the close. The contract ultimately settled at $3,801.5/mt, posting a gain of $91.5/mt or 2.47% for the session.
Trading volume contracted to 13,406 lots, while open interest declined by 2,778 lots to 255,000 lots, indicating position reduction by market participants. The Shanghai Futures Exchange followed suit, with the most-traded SHFE zinc 2611 contract opening at 26,080 yuan per metric ton. The contract consolidated at higher levels throughout the session, dipping to an intraday low of 26,040 yuan/mt before climbing to 26,215 yuan/mt, ultimately closing at 26,210 yuan/mt, up 280 yuan/mt or 1.08%.
SHFE trading volume fell to 50,372 lots with open interest decreasing by 1,658 lots to 106,000 lots. Market technicians note that LME zinc formed a bullish candlestick pattern with the lower Bollinger Band providing support. The 0-3 month backwardation structure widened slightly from its lows, offering additional price support.
Analysts expect short-term consolidation as bulls and bears continue to battle for direction. On the Shanghai spot market, purchase willingness for refined zinc varied across regional markets. Shanghai registered purchasing sentiment of 2.14 against selling sentiment of 2.56, while Guangdong showed 1.95 bid versus 2.65 ask.
The pullback in futures prices prompted downstream enterprises to actively price and purchase on dips, supporting spot premiums which rose on a month-over-month basis across major regional markets. LME zinc inventory decreased by 575 metric tons on October 9, bringing total stocks to 126,850 mt, representing a 0.45% decline. Domestic inventory levels continued to accumulate according to SMM communications.
On the fundamental side, smelters' production enthusiasm remained relatively poor due to profit concerns, while downstream consumption continued at mediocre levels. Analysts anticipate prices will consolidate in the near term as market participants await clearer fundamental signals. Source: Shanghai Metals Market (SMM) Zinc Morning Meeting Summary, October 12, 2026
Source: news.metal.com