- Need-based buying continues as prices hover near multi-year highs
- Inventory fluctuations keep market participants cautious
London Metal Exchange (LME) zinc prices continued rising in the week ended 15 May 2026, supported by firm buying sentiment and broader strength across the base metals complex. Prices registered strong w-o-w gains despite heightened volatility during the latter half of the week and continued cautious procurement activity at elevated levels.
Price trends
LME zinc cash settlement prices opened the week at $3,442/t on 11 May and strengthened steadily through the week amid sustained buying interest and positive market momentum.
Prices rose to $3,498/t on 12 May and further to $3,517/t on 13 May before surging sharply to a weekly high of $3,596/t on 14 May. However, the market witnessed some profit-booking towards the end of the week, with cash settlement easing to $3,527/t on 15 May.
On a w-o-w basis, LME zinc cash prices increased by around 5%, reflecting continued bullish sentiment despite intermittent volatility and cautious downstream buying at higher levels.
The three-month contract followed a similar trend, increasing from $3,455/t on 11 May to $3,542/t on 15 May, indicating stable forward market confidence.
Inventory analysis
LME zinc inventories remained largely rangebound during the week, reflecting balanced supply conditions despite some fluctuations.
Stocks increased marginally from 110,300 t on 11 May to 111,425 t on 12 May before easing to 110,275 t on 13 May. Inventories again edged higher to 110,875 t on 14 May before settling at 110,750 t on 15 May.
The relatively stable inventory trend suggests that while supply pressure has not intensified materially, visible stock levels remain elevated enough to cap aggressive upside momentum.
MCX zinc trends (11-15 May)
On the Multi Commodity Exchange (MCX), zinc futures mirrored global market strength and traded firmly throughout the week.
The May contract opened at INR 349,000/t on 11 May and strengthened consistently, reaching a weekly high of INR 371,000/t on 14 May before correcting slightly to close at INR 363,000/t on 15 May.
Open interest fluctuated during the week and declined marginally from 2,168 lots on 11 May to 2,146 lots on 15 May, indicating cautious participation and likely profit-booking at elevated levels.
Trading volumes remained healthy during the week, while domestic procurement activity continued to be largely need-based amid persistently high prices.
SHFE zinc trend
On the Shanghai Futures Exchange (SHFE), zinc prices remained firm throughout the week, supported by stable Chinese demand sentiment and broader strength in global zinc markets.
SHFE zinc prices increased from $3,610/t on 11 May to $3,635/t on 12 May before easing marginally to $3,610/t on 13 May. However, prices rebounded strongly thereafter, rising to $3,647/t on 14 May and closing at $3,693/t on 15 May.
The overall trend indicates resilient market sentiment in China despite intermittent price volatility.
Outlook
In the near term, LME zinc prices are expected to remain supported by firm broader market sentiment and steady underlying demand.
However, elevated inventory levels and continued cautious downstream procurement at higher prices may restrict sharp upside movement in the near term.
Prices are likely to find support in the $3,480-3,500/t range, while resistance is seen around $3,600-3,650/t.
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