LME three-month zinc is trading at approximately $3,540/t as of late May 2026, near three-year highs driven by tight visible inventories. JP Morgan expects zinc to average $3,400-3,500/t for the remainder of 2026.
LME zinc inventories remain critically low at approximately 156,000t combined on- and off-warrant, far below the 2024 peak of 400,000t. This 61% YoY decline underscores structural tightness.
SHFE zinc tracked upward, with the most-traded contract near CNY 23,730/t. SMM reports increased smelter maintenance with further production declines expected in June.
The inventory drawdown reflects a persistent supply deficit. ILZSG data shows demand outpacing supply growth despite recovering mine output from new projects.
LME zinc's tight inventory position creates acute squeeze risk. Any demand pickup or supply disruption could trigger a rapid price spike.
LME zinc's tight inventory position creates acute squeeze risk. Any demand pickup or supply disruption could trigger a rapid price spike.