Domestic smelters extend maintenance, zinc prices rise during the week [SMM Market Review - Weekly Price Review]

LME Zinc: At the beginning of the week, the LME zinc market was closed for one day. Subsequently, due to the lingering uncertainty surrounding Trump's tariff policies and the increasing likelihood of a delay in the US Fed's interest rate cut, LME zinc prices declined. Then, the US Conference Board's Consumer Confidence Index for May exceeded expectations, causing the US dollar index to rise. However, as overseas inventories continued to decline, LME zinc maintained a fluctuating trend. Later, as the market gradually absorbed the news of increased US consumer confidence and a rebound in the US business activity index, market sentiment towards the US economy became less pessimistic, and the US dollar index continued to rise, leading to a decline in LME zinc prices. Subsequently, as trade relations between the EU and the US eased, overall market sentiment improved, and LME zinc prices rose slightly. However, when the US Fed explicitly warned of stagflation risks, the market once again entered a state of tension. Meanwhile, overseas inventories continued to decline sharply, and LME zinc maintained a fluctuating trend. Subsequently, amidst a strengthening US dollar, LME zinc prices declined. Then, LME zinc prices rose slightly, recovering some of the losses. As of 15:00 this Thursday, LME zinc was recorded at $2,715.5/mt, up $3/mt or 0.11% from the previous day.

SHFE Zinc: At the beginning of the week, from a fundamental perspective, there was a continuous inflow of imported zinc ingots into China recently, coupled with a significant increase in ore imports in April. Additionally, export orders in the consumer sector recovered slightly recently, and SHFE zinc maintained a fluctuating trend. Subsequently, influenced by the news of extended maintenance at smelters in South China, expectations for a subsequent easing of the supply side were affected, and market concerns gradually arose, causing SHFE zinc prices to rise rapidly. Then, as the market gradually absorbed this news, SHFE zinc prices quickly pulled back. Subsequently, the Trump administration released positive news on tariffs again, and SHFE zinc prices rose slightly. However, due to the significant increase in ore imports in April and the gradual resumption of production at some smelters, the market still had certain expectations for a subsequent easing of the supply side. Coupled with the continued resilience in consumption, SHFE zinc maintained a fluctuating trend. Then, driven by the LME market, SHFE zinc prices continued to decline. Subsequently, according to SMM data, domestic social inventories continued to decline, reaching 75,000 mt, providing some support for zinc prices, and SHFE zinc prices continued to rise. As of 15:00 this Thursday, SHFE zinc was recorded at 22,495 yuan/mt, up 280 yuan/mt or 1.26% from the previous day.

                                                                                                                                                》Click to view the SMM Metal Industry Chain Database