SMM zinc morning comment: Shortage of ore supports zinc prices, SHFE zinc's decline slows down

Federal Reserve policy indicator: No rush to cut interest rates now! The death toll from the terrorist attack on the Moscow State Concert Hall rose to 140; the Japanese yen once devalued to its lowest level since 1990! S&P confirms the "AA+/A-1+" sovereign credit rating of the United States; India's gold imports in March are expected to drop by more than 90% month-on-month; President Xi Jinping: The common interests of China and the United States have not been reduced, but are more; the total profits of large-scale industrial enterprises across China increased by 10.2% year-on-year; Beijing has lifted the restriction on house purchase within three years of divorce.

Overnight, LME zinc opened at $2444.5/mt, hitting a low and high of $2409/mt and $2450/mt respectively, and closed at $2447.5/mt, up $7.5/mt or 0.31%. Trading volume grew to 12498 lots, and open interest grew 4431 lots to 237,000 lots. LME zinc inventory decreased by 2450 mt or 0.92% to 263550 mt. Federal Reserve officials issued hawkish remarks, which once again hit expectations of interest rate cuts due to sticky inflation. Subsequently, market sentiment recovered.

The most-traded SHFE 2405 zinc contract opened at 20730 yuan/mt overnight and fell to 20680 yuan/mt before rallying to a peak of 20840 yuan/mt. It eventually settled at 20840 yuan/mt, down 10 yuan/mt or 0.05%. Trading volume reduced to 48205 lots, and open interest gained by 402 lots to 97443 lots. The recent macro sentiment has been poor, and the fundamental pattern of weak supply and weak demand has not changed. However, the shortage of ore has provided support to zinc prices.