[SMM Lead Morning Comments] LME and SHFE zinc Prices Weakened amid Stock Accumulation at Home and Abroad

In April, the market mainly watched for whether the Fed rate hike might pause and if the economy might fall into a recession.

Aluminium futures prices dropped after surging from April 11 to May 11.

The most-traded stainless steel contract once soared last week, but the overall prices moved rangebound.

LME copper prices closed at $8,243/mt last Friday evening, a rise of 0.67%. Trading volume was 20,000 lots and open interest stood at 254,000 lots. SHFE 2306 copper contract finished at 64,940 yuan/mt overnight, up 0.87%. Trading volume was 64,000 lots, and open interest stood at 193,000 lots. On the macro front, the US dollar rose last Friday and recorded its biggest weekly gain since February, mainly due to the decline in consumer confidence index, which intensified market concerns about the US debt ceiling and monetary policy, bolstering the risk appetite for the US dollar.

The China Association of Automobile Manufacturers pointed out that the current downward pressure on the Chinese economy continues to increase.

Shanghai nonferrous metals closed mostly with losses in day trading. 

Crude oil fell slightly today. As of 15:36 CST, WTI oil and Brent oil fell 0.67% and 0.7% respectively. The U.S. dollar gained ground today, and as of 15:37, the U.S. dollar index rose 0.16%.

Argentina aims to become one of the top 10 copper producer in the world by 2030, and its investor-friendly stance has attracted global players such as Glencore and Lundin Mining to its north mountains.

SHFE nickel prices moved rangebound yesterday.

Chongqing issued a document on pushing for the elimination of outdated capacity in 2023.