LME Zinc: At the beginning of the week, as investors weighed the policy outlook under Wash's leadership of the US Fed and the US manufacturing sector's return to expansion territory in January, the US dollar index continued its upward trend, and LME zinc's center declined. However, sustained reductions in overseas zinc inventory supported LME zinc in recouping losses and rising. Subsequently, the end of the partial US government shutdown alleviated market uncertainty, yet strong dovish signals from some US Fed officials, weaker-than-expected US ADP employment data, and lingering geopolitical risks led LME zinc to fluctuate considerably. Then, weakening precious metals caused a slight follow-on decline in LME zinc, but continued destocking in overseas social inventory provided support at the price bottom, and LME zinc maintained a fluctuating trend. As of 15:00 this Friday, LME zinc fell to $3,287.5/mt, down $82.5/mt, a decrease of 2.45%.
SHFE Zinc: At the beginning of the week, from a macro perspective, Wash's nomination as the next US Fed chair drove the US dollar index higher, significantly dragging SHFE zinc downward. Subsequently, following the LME's lead, SHFE zinc opened higher with a gap. On one hand, SMM data showed an increase in domestic enterprises on holiday and social inventory buildup; on the other hand, TCs hovered at lows, and the central bank released favorable policies, leading SHFE zinc to maintain fluctuation at highs. Then, continued accumulation in domestic social inventory, mediocre spot consumption performance, coupled with weakening precious metals, caused SHFE zinc to decline. However, overall macro sentiment in the market had not fully digested, providing support at the bottom, and SHFE zinc maintained rangebound fluctuation. As of 15:00 this Friday, SHFE zinc fell to 24,450 yuan/mt, down 1,385 yuan/mt, a decrease of 5.36%.
