- Need-based procurement continues as prices sustain above key levels
- Inventory fluctuations, volatile futures trade keep sentiment mixed
London Metal Exchange (LME) zinc prices remained firm in the week ended 22 May 2026, supported by resilient broader market sentiment and steady buying interest across the base metals complex. Although the market witnessed intermittent volatility during the week, prices managed to hold above key psychological levels despite cautious downstream procurement and fluctuating inventories.
Price trends
LME zinc cash settlement prices opened the week at $3,529/t on 18 May and remained largely rangebound through the initial sessions amid mixed market cues and cautious buying activity.
Prices eased marginally to $3,517/t on 19 May before recovering slightly to $3,519/t on 20 May. Buying momentum improved during the latter half of the week, with cash settlement rising to $3,527.5/t on 21 May and further strengthening to close at $3,544.5/t on 22 May.
On a w-o-w basis, LME zinc cash prices increased marginally, indicating continued resilience in market sentiment despite volatile intra-week movements and elevated price levels.
The three-month contract also remained firm, moving from $3,539/t on 18 May to $3,548/t on 22 May, reflecting stable forward market confidence and expectations of balanced near-term fundamentals.
Inventory analysis
LME zinc inventories fluctuated during the week, reflecting continued uncertainty regarding near-term supply-demand dynamics.
Stocks increased sharply from 109,925 t on 18 May to 112,500 t on 19 May before easing gradually over the following sessions. Inventories declined to 112,050 t on 20 May, further to 111,250 t on 21 May, and settled at 111,025 t on 22 May.
The inventory movement suggests that while visible supply remains relatively comfortable, the gradual drawdown towards the end of the week provided some support to overall market sentiment.
MCX zinc trends (18-22 May)
On the Multi Commodity Exchange (MCX), zinc futures traded firm during the week, tracking global market trends and sustained buying interest.
The May contract opened at INR 365,150/t on 18 May and strengthened gradually during the week, reaching a weekly high of INR 370,400/t on 20 May. Prices witnessed some volatility thereafter but remained elevated, closing at INR 369,950/t on 22 May.
Open interest declined consistently from 2,174 lots on 18 May to 1,803 lots on 22 May, indicating profit-booking and cautious participation at higher price levels.
Trading volumes remained active throughout the week, while domestic buyers largely continued need-based procurement amid persistently elevated zinc prices.
SHFE zinc trend
On the Shanghai Futures Exchange (SHFE), zinc prices witnessed a largely downward trend during the week amid cautious sentiment in the Chinese market.
SHFE zinc prices stood at $3,724/t on 18 May before declining sharply to $3,565/t on 19 May. Prices continued easing to $3,537/t on 20 May and further to $3,531/t on 21 May before settling at $3,518/t on 22 May.
The softer SHFE trend indicates cautious demand sentiment in China despite overall stability in global zinc fundamentals.
Outlook
BigMint expects LME zinc prices to remain supported by firm broader market sentiment, stable demand fundamentals, and relatively balanced supply conditions in the near term. However, elevated price levels, cautious downstream procurement, and fluctuating inventory trends may continue to restrict aggressive upside momentum.
Prices are likely to find support in the $3,500-3,520/t range, while resistance is seen around $3,580-3,620/t.
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