SMM zinc morning comment: SHFE zinc prices weakened dragged by LME zinc

Overnight, LME zinc prices opened at a high of US$2,529/ton, and it reached a low of US$2,515/ton, and finally closed at US$2,470/ton, down US$58/ton, or 2.29%. The trading volume increased to 12,171 lots, and the open interest increased by 2,252 lots to 220,000 lots. LME zinc inventories fell by 550 tons to 198,875 tons, a decrease of 0.28%. The final value of the Markit manufacturing PMI in the United States in January was recorded at 50.7, which was higher than the previous value and the forecast value of 50.3. The ISM manufacturing PMI in the United States in January was recorded at 49.1, which was also higher than the previous value of 47.1 and the forecast value of 47. Under the influence of negative macro sentiment , short sellers further sold, and LME zinc prices ran weakly.
The most active SHFE 2312 zinc contract prices opened at 20880 yuan/mt and fell 260 yuan/mt or 1.24% to settle at 20790 yuan/mt in overnight trading with the low-end of 20760 yuan/mt. Trading volumes decreased to 36105 lots and open interest grew 1615 lots to 81384 lots. There will be no interest rate cut until we are more confident that inflation is approaching 2%. The Fed will consider "any adjustments" to interest rates and will keep the discount rate unchanged at 5.5%, consistent with its last decision. However, the internal market was dragged down by the external market, and the trend was weak.