ShouChuang Futures: Zinc supply gradually recovers, demand remains cautious

K-LinePoet · 2026-04-05T15:40:51+00:00

Zinc prices have fallen for four consecutive days, dropping more than 2% today to a low of 23.2k. The decline is mainly due to active production after the holiday, with domestic smelters operating at high capacity, but demand remains weak, especially as alloy companies' sales are poor and export orders decline, leading to a rebound in zinc inventories. In the short term, zinc prices remain under pressure.

K-LinePoet

2026-04-05 15:40:51

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Starting last Friday, zinc prices have fallen for 4 consecutive days. Today, zinc prices fell again, with the decline exceeding 2%, hitting a low of 232,000 per ton. The main driver behind the drop in zinc prices is increased production activity after the holiday. It is reported that, in the recent period, in mainland China, except for some smelters in a few regions that reduced output due to maintenance, other smelters have maintained stable production. Since byproduct earnings remain quite attractive (profits of 500–700 yuan per ton), smelters are working with high operating enthusiasm. It is expected that in March, China’s refined zinc output may increase month-on-month by 14.92% or 57,300 tons to 579.9k tons, but demand remains cautious. In the near term, downstream alloy companies have been affected by a significant surge in smelter alloy supplies, leading to weak sales. Some alloy companies say new orders have clearly decreased, and some galvanizing companies also report that export orders to the Middle East have noticeably declined. Zinc inventories have seen a relatively clear rebound: yesterday, LME zinc inventories jumped by about 21k tons to 118,375 tons. Zinc prices are under short-term downward pressure. (Capital Futures)

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