SHFE Zinc Inventory & Settlement
Warehouse inventory, futures settlement prices, and open interest data
About SHFE Zinc Data
SHFE zinc inventory represents physical zinc ingots stored in exchange-approved warehouses. China accounts for nearly half of global zinc consumption, primarily for galvanizing steel used in construction and infrastructure. SHFE zinc stocks are closely watched as a leading indicator for global zinc supply tightness. This page also includes daily settlement prices, volume, and open interest data for all active zinc futures contracts, with historical data going back to 2020.
SHFE Zinc Futures Contract Details
The SHFE zinc futures contract has a standard lot size of 5 tonnes (5,000 kilograms), priced in Chinese yuan (CNY) per tonne. The minimum tick size is 5 CNY/tonne, and contracts are available for delivery across multiple months throughout the year. Initial margin requirements are typically 8-10% of the contract value, with daily price limits of approximately 5% above or below the previous settlement price.
Physical delivery requires zinc ingots meeting SHFE-specified quality standards, with a minimum purity of 99.995% Zn (Zn0-1 grade). Deliverable brands include registered domestic smelters and select international producers. Zinc ingots must be stored in SHFE-approved warehouses located across China's major industrial regions.
SHFE zinc is one of the more actively traded base metals contracts on the exchange, reflecting zinc's broad importance to Chinese industry. The contract is widely used by galvanizers, die-casters, and zinc smelters for hedging purposes, and its liquidity makes it accessible for both commercial and speculative participants.
China's Steel and Galvanizing Industry
China produces approximately 55% of the world's steel, and zinc is essential for galvanizing — the process of coating steel with a thin layer of zinc to prevent corrosion. Galvanizing accounts for roughly 60% of global zinc consumption, making the steel industry the single most important demand driver for zinc. In China, galvanized steel is used extensively in construction, infrastructure, automotive manufacturing, and household appliances.
SHFE zinc inventory closely mirrors steel industry activity in China. When steel production ramps up for infrastructure stimulus programs, real estate construction, or manufacturing expansion, zinc consumption rises and SHFE warehouse stocks draw down. Conversely, government-mandated steel production cuts (often implemented for environmental or carbon reduction goals) lead to reduced zinc demand and inventory accumulation.
Beyond galvanizing, China is also a major market for zinc in die-casting (used in automotive parts, hardware, and electronics housings), brass alloys, and zinc oxide (used in rubber, ceramics, and chemicals). These secondary demand sources add further cyclicality to SHFE zinc inventory patterns, particularly when automotive and consumer goods production is strong.
Data Sources & Methodology
MetalCharts sources SHFE zinc settlement prices and weekly warrant stock data from official Shanghai Futures Exchange data feeds. Settlement prices are updated daily after market close, covering all active zinc futures delivery months with open, high, low, close, volume, open interest, and turnover figures.
Inventory data is published by SHFE on a weekly basis and includes per-warehouse breakdowns. Zinc inventory is displayed in metric tons as reported by the exchange. Historical data is available going back to 2020.
Frequently Asked Questions
- How is SHFE zinc inventory measured?
- SHFE zinc inventory is measured in metric tons. Zinc is stored as ingots in SHFE-approved warehouses across China.
- Why is SHFE zinc inventory important?
- China is the world's largest zinc consumer and producer. SHFE zinc stocks reflect the domestic supply-demand balance, critical for galvanizing steel and die-casting industries.
- What seasonal patterns affect SHFE zinc inventory?
- Zinc inventory typically rises during slower demand periods and draws down during peak construction and infrastructure seasons in China, particularly spring and autumn.
- What is the SHFE zinc settlement price?
- The SHFE zinc settlement price is the official daily benchmark used for margin calculations and delivery invoicing. It reflects the weighted average of trades during the closing period and is a key reference for Chinese domestic zinc pricing.
- How does China's steel industry affect SHFE zinc?
- China produces approximately 55% of the world's steel, and zinc is essential for galvanizing steel to prevent corrosion. SHFE zinc inventory closely mirrors steel industry activity: when steel production ramps up for infrastructure and construction projects, zinc consumption rises and SHFE stocks draw down. Conversely, steel production cuts lead to zinc inventory builds.
- What is the relationship between SHFE and LME zinc?
- SHFE and LME zinc prices are linked through import/export arbitrage. When the SHFE-LME zinc price spread (adjusted for duties and logistics) favors imports, physical zinc flows into China and can increase SHFE warehouse stocks. When the spread narrows, Chinese zinc may remain in the domestic market or be redirected to LME warehouses outside China.