Bullish and Bearish Factors Intertwined as SHFE and LME Zinc Prices Rose [SMM Market Review - Weekly Price Review]

LME zinc: At the beginning of the week, LME zinc extended last week’s fluctuating downward trend; subsequently, the US dollar index dropped back slightly from its highs, and LME zinc rose; however, the continued escalation of the Middle East conflict, coupled with the renewed strength of the US dollar index, constrained the upside room for zinc prices, and the center of LME zinc gradually pulled back; later, market reports said the US sought to broker a ceasefire in the Iran war, but market sentiment remained relatively cautious, and zinc prices continued to fluctuate; then, market expectations for a swift end to the Middle East conflict weakened, the US dollar index continued to strengthen, and zinc prices came under pressure again; however, the continued decline in LME zinc inventory provided some support to zinc prices, and amid the tug-of-war between longs and shorts, LME zinc maintained a fluctuating trend. As of this Friday, LME zinc stood at $3,106.5/mt, up $50.5/mt, or 1.65%.

SHFE zinc: At the beginning of the week, SHFE zinc extended last week’s fluctuating trend; subsequently, driven by a weaker US dollar and gains in the LME, coupled with continued declines in China’s social inventory, SHFE zinc opened higher with a gap; then, as the overall macro environment still carried some uncertainty, on the fundamentals side, China’s zinc concentrate TCs struggled to rise, while China’s zinc ingot inventory gradually destocked. Under the dual impact of fundamentals and macro factors, SHFE zinc maintained a fluctuating trend; afterward, although geopolitical uncertainty persisted, downstream consumption gradually recovered and China’s zinc ingot inventory continued to destock, providing some support at the bottom of zinc prices, and the center of SHFE zinc edged higher. As of 15:00 this Friday, SHFE zinc stood at 23,380 yuan/mt, up 445 yuan/mt, or 1.94%.