Tug-of-War Between Longs and Shorts Continues, SHFE and LME Prices Fluctuate Upward [SMM Market Review - Weekly Price Review]

LME zinc: At the beginning of the week, buoyed by optimism over easing geopolitical tensions, LME zinc edged up. Subsequently, as expectations around US-Iran negotiations fluctuated and the Strait of Hormuz faced renewed restrictions, market concerns intensified, causing LME zinc to struggle to rise and pull back continuously. Despite lingering macro uncertainties, LME inventory continued destocking and bears reduced positions and exited, providing periodic support for a zinc price rebound. Combined with Trump's extension of the US-Iran ceasefire period, macro sentiment recovered marginally, and LME zinc strengthened further. However, with geopolitical conditions remaining volatile, the tug-of-war between longs and shorts intensified, and LME zinc pulled back again, maintaining an overall sideways-moving pattern. As of 15:00 this Friday, LME zinc was recorded at $2,431.5/mt, up $2.5/mt, a gain of 0.07%.

SHFE zinc: At the beginning of the week, driven by a stronger LME market, SHFE zinc edged up slightly. Subsequently, macro uncertainties combined with social inventory buildup of zinc ingots in China and mediocre end-use consumption performance led SHFE zinc to gradually pull back. The persistently low inventory pattern outside China continued to support LME zinc strength, and expectations of the zinc ingot export window opening provided a boost to the SHFE market, driving SHFE zinc periodically higher. However, mediocre domestic consumption weighed on prices, limiting rebound potential, and prices moved sideways. As macro sentiment periodically recovered, SHFE zinc rose again. Yet, with geopolitical tensions not fully resolved, domestic ingot inventory remaining elevated, and tight zinc ore conditions persisting, SHFE zinc traded in a range amid mixed bullish and bearish factors. LME zinc pulled back slightly toward the end of the week. As of 15:00 this Friday, SHFE zinc was recorded at 24,225 yuan/mt, up 155 yuan/mt, a gain of 0.64%.