- Sharp mid-week stock build caps upside despite end-week drawdown
- Buying activity improves slightly, though remains largely need-based
London Metal Exchange (LME) zinc prices strengthened in the week ended 17 April 2026, recovering from the previous week’s mild correction, supported by renewed buying interest and improving sentiment. While prices trended higher on a w-o-w basis, volatility in exchange inventories-particularly a sharp mid-week build-tempered bullish momentum. Market participants largely remained cautious, with procurement continuing on a need-based basis at elevated price levels.
Price trends
LME zinc prices opened the week on a steady note, with cash prices at $3,304.5/t on 13 April. Prices initially remained range-bound before gaining upward momentum in the second half of the week.
Cash prices dipped marginally to a weekly low of $3,300/t on 14 April, before rising consistently to close at a weekly high of $3,439/t on 17 April. The steady uptrend reflects improved sentiment following the prior week’s consolidation.
On a w-o-w basis, cash prices registered an increase of around 4-4.5%, indicating a resumption of the broader uptrend.
The three-month contract followed a similar trajectory. Prices moved up from $3,315/t at the start of the week to close at $3,447.5/t on 17 April, supported by firm forward sentiment and improved market participation.
Inventory analysis
LME zinc inventories displayed significant intra-week volatility. Stocks initially rose sharply from 111,775 t on 13 April to 116,475 t by 15 April, indicating fresh inflows into exchange warehouses.
However, this build was partially reversed towards the end of the week, with inventories declining to 112,825 t by 17 April.
On a w-o-w basis, stocks remained broadly stable with a marginal increase, but the sharp mid-week build followed by drawdown highlights ongoing fluctuations in visible supply.
The mixed inventory trend limited stronger price gains, though the end-week decline provided some support to market sentiment.
MCX zinc trends (13-17 April)
On the Multi Commodity Exchange (MCX), zinc futures mirrored global strength, posting a firm uptrend during the week.
The April contract opened at INR 329,750/t on 13 April and gained steadily, supported by stronger LME cues. Prices peaked at INR 343,900/t on 17 April before easing slightly to close at INR 339,100/t.
Open interest showed a marginal increase from 2,066 lots at the beginning of the week to 2,112 lots by 17 April, indicating limited fresh long build-up amid cautious sentiment.
Trading volumes remained healthy, reflecting active participation, while domestic demand continued to be driven largely by need-based buying at higher price levels.
SHFE zinc trend
On the Shanghai Futures Exchange (SHFE), zinc prices exhibited a gradual upward trend during the week. Prices remained largely stable in the early sessions before gaining momentum towards the end of the week.
Zinc prices moved from $3,559/t on 13 April to $3,587/t on 17 April, reflecting steady demand conditions in China.
The overall trend indicates a balanced market, with measured buying interest aligning with global sentiment.
Outlook
In the near term, LME zinc prices are expected to remain supported by improving sentiment and end-week inventory drawdowns. However, intermittent stock inflows and cautious buying behaviour may limit sharp upside.
Prices are likely to find support in the $3,350-3,380/t range, while resistance is expected around $3,450-3,500/t.
Market participants will continue to monitor inventory movements and demand trends for clearer directional signals, especially amid ongoing volatility in visible supply.
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