SMM Zinc Morning Comment

Overnight, Minneapolis Fed President Kashkari said: The Fed will take more measures on interest rates if necessary, and the FOMC did not discuss interest rate cuts. Chicago Fed President Goolsby: If long-term Treasury yields remain at a high level, it is likely to be equivalent to tightening policy, and the first priority in changing the interest rate stance is the progress of inflation; Fed Governor Bowman: It is still expected that further interest rate increases will be needed. Dallas Fed President Logan: Inflation is still too high and the data looks to be heading towards 3% rather than 2%. Fed Governor Waller: The economy is booming in Q3, and the Fed is paying close attention to this situation. The surge in the 10-year U.S. Treasury yield is an "earthquake." Palestinian-Israeli Conflict - Defense Minister: Israeli troops have entered the core area of Gaza City; US media: Biden told Netanyahu that the three-day ceasefire pause may help to release some hostages; Prime Minister: There can be no time limit Maintain security control over Gaza. The IMF said at the press conference on China's economic assessment that due to higher-than-expected performance in the third quarter and a series of fiscal measures introduced by the Chinese government, China's GDP growth forecast this year has been raised from 5% to 5.4%, and the forecast for 2024 is 4.6%. China Customs： In dollar terms, China's total import and export value in July was $493.13 billion, a decrease of 2.5%. Exports fell by 6.4%; imports increased by 3%; the trade surplus was $56.53 billion, narrowing by 30.8%.

LME zinc prices opened at $2568/mt and closed up $8.5/mt or 0.33% at $2576/mt last evening. The trading volume decreased to 8207 lots, and open interest added 1324 lots to 199,000 lots. LME zinc inventory shed by 800 mt to 75925 mt.
The most traded SHFE 2312 zinc contract opened at 21475 yuan/mt and closed at 21655 yuan/mt overnight, up 5 yuan/mt or 0.02%. The trading volume was down to 42430 lots, and open interest decreased 259 lots to 88701 lots. Federal Reserve officials continued to make hawkish statements, and the U.S. dollar index continued to rise. However, the gains slowed down in the night, and the slight decline provided upward momentum for LME zinc. China's imports unexpectedly increased in October, while exports shrank at an accelerated pace, and the trade surplus narrowed. However, the IMF raised China's GDP growth rate to 5.4%, coupled with the support of domestic fundamental disturbances, raised SHFE zinc prices.