Last Friday, the U.S. core PCE price index for April recorded its lowest monthly rate since December 2023. OPEC+ extended its "collective production cut measures" until the end of 2025. Japan spent JPY 9.8 trillion in the past month to intervene in the forex market. The Houthis claimed to have attacked the "Eisenhower" again. Blinken confirmed that Biden agreed to use U.S. aid weapons to attack Russian territory. China stated that the "Indo-Pacific Strategy" is hegemonic behind its grand rhetoric. Commerce Minister Wang Wentao expressed hope that the EU would abandon protectionism.
Last Friday, LME zinc opened at $3,062.0/mt, initially fluctuating around $3,050.0/mt, peaking at $3,078.5/mt. Bulls then pushed LME zinc higher to around $3,070.0/mt, but it lacked upward momentum, and bears took control, driving LME zinc down to a low of $2,962.5/mt. It consolidated around $2,990.0/mt at the end of the trading session, finally closing down at $2,985.0/mt, down $76.0/mt or 2.48%. Trading volume increased to 11,000 lots, and open interest increased by 3,065 lots to 248,000 lots. LME zinc inventory increased by 5,250 lots to 257,025 lots, up 2.04%. The Chicago PMI unexpectedly fell, and China's April PMI was below the expansion-contraction line, reducing bullish sentiment in the macro view. Last Friday, the most-traded SHFE zinc contract opened at ¥24,890/mt, initially peaking at ¥25,010/mt, then fell below the average daily line to a low of ¥24,220/mt. It consolidated around ¥24,300/mt at the end of the trading session, finally closing down at ¥24,320/mt, down ¥450/mt or 1.82%. Trading volume increased to 142,000 lots, and open interest increased by 878 lots to 106,000 lots. SHFE zinc fell due to the impact of overseas futures, but tight supply of ore still supports zinc prices, limiting the short-term decline in SHFE zinc.
