- Sustained stock drawdowns lift cash prices by 2% w-o-w
- Buying remains cautious, need-based at elevated levels
London Metal Exchange (LME) zinc prices extended their upward trend in the week ended 24 April 2026, supported by steady buying interest and consistent drawdowns in exchange inventories. Prices remained firm on a w-o-w basis, underpinned by tightening visible supply, although market participants largely continued with need-based procurement at elevated levels.
Price trends
LME zinc prices opened the week on a firm note, with cash prices at $3,430/t on 20 April. Prices moved in a narrow range during the early sessions before gaining momentum mid-week.
Cash prices increased steadily to $3,468/t on 22 April, followed by a brief correction to $3,446/t on 23 April. However, the market regained strength towards the end of the week, closing at a weekly high of $3,485/t on 24 April.
On a w-o-w basis, cash prices rose by around 1.5-2%, indicating sustained upward momentum, albeit at a slower pace compared to the previous week.
The three-month contract followed a similar trajectory, increasing from $3,438/t at the start of the week to $3,474/t by 24 April, reflecting stable forward sentiment.
Inventory analysis
LME zinc inventories showed a consistent declining trend throughout the week, providing key support to prices.
Stocks decreased steadily from 111,000 t on 20 April to 102,825 t by 24 April, marking a net drawdown of over 8,000 t during the week.
The absence of any major mid-week stock build and continuous outflows from warehouses indicates tightening visible supply conditions. This sustained decline in inventories helped reinforce positive market sentiment and supported the upward price trend.
MCX zinc trends (20-24 April)
On the Multi Commodity Exchange (MCX), zinc futures mirrored global cues and remained on an upward trajectory during the week.
The April contract opened at INR 340,450/t on 20 April and strengthened steadily, reaching a weekly high of INR 354,650/t on 24 April before closing at INR 350,200/t.
Open interest declined from 2,047 lots at the beginning of the week to 975 lots by 24 April, indicating likely short covering rather than aggressive fresh long build-up.
Trading volumes remained moderate to healthy, while domestic demand continued to be driven primarily by need-based buying amid elevated prices.
SHFE zinc trend
On the Shanghai Futures Exchange (SHFE), zinc prices displayed a mixed-to-stable trend during the week.
Prices declined sharply at the start to $3,444/t on 21 April before recovering gradually, closing at $3,469/t on 24 April.
The overall movement suggests balanced demand conditions in China, with mild fluctuations but no strong directional bias.
Outlook
In the near term, LME zinc prices are expected to remain supported by sustained inventory drawdowns and steady underlying demand.
However, continued cautious buying behaviour may limit sharp upside momentum. Prices are likely to find support in the $3,420-3,450/t range, while resistance is seen around $3,500-3,520/t.
Market participants are expected to closely monitor inventory trends and demand cues for further direction, particularly amid tightening visible supply conditions.
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