Weekly zinc concentrate TCs reduced, SHFE zinc rose slightly [SMM zinc morning comment]

Last Friday evening, LME zinc prices opened at $2422.5/mt and closed at $2432.5/mt with the low-end of $2400.5/mt and the high-end of $2435/mt, up $9/mt or 0.37%. Trading volume increased to 9438 lots, and open interest decreased 4693 lots to 234,000 lots. LME zinc inventory decreased by 150 mt or 0.054% to 275950 mt. The Federal Reserve's hawkish speech continued, dampening market sentiment. However, the U.S. ISM manufacturing index in February recorded 47.8, which was lower than expected and lower than the previous value. The weak U.S. manufacturing data increased expectations of U.S. interest rate cuts. The U.S. dollar weakened.

Last Friday, the SHFE 2404 zinc contract opened at 20,525 yuan/ton with a low of 20,510 yuan/ton and a high of 20,610 yuan/ton. It finally closed down at 20,570 yuan/ton, down 25 yuan/ton, or 0.12%. The trading volume dropped to 31,368 lots, and the open interest decreased by 9 lots to 106,000 lots. In February, Caixin China's manufacturing PMI rose month-on-month. Since the second half of 21, it has been in the expansion range for four consecutive months. The prosperity of the manufacturing industry has improved, and weekly TCs have been reduced again. The cost support of smelters is strong.