Market sentiment has improved, SHFE zinc prices rebounded [SMM zinc morning comment]

Gold hits record high again; Russia's Investigative Committee says it has obtained evidence of links between the concert hall attackers and Ukraine; Hamas Politburo members: not optimistic about reaching a ceasefire agreement in Gaza; Federal Reserve: The richest 1% in the United States China's wealth reached a record $44.6 trillion; the United States purchased 2.8 million barrels of crude oil to replenish emergency oil reserves; Premier Li Qiang: Solidly promote large-scale equipment updates and trade-in of consumer goods; the increase in ETF holdings by China was confirmed; Xiaomi announced that the standard version of SU7 is priced at 215,900 yuan, and it was set to exceed 50,000 units in just 27 minutes after it was launched.

LME zinc opened at $2445/mt yesterday evening, and hit a high of $2458.5/mt before falling back to $2425.5/mt, and closed at $2437/mt, a decrease of $10.5/mt or 0.43%. The trading volume decreased to 9022 lots, and open interest added 1631 lots to 238,000 lots. LME zinc inventory grew by 7325 mt or 2.78% to 270875 mt. The U.S. fourth-quarter economic data shows that the U.S. economy is still strong, and the market sentiment has not yet been digested by the hawkish speech of Federal Reserve officials. The U.S. dollar index was boosted by this, and the LME inventory increased again, which weakened the support for zinc prices. Pay attention to Core PCE price index released on Friday.

The most-traded SHFE 2405 zinc contract opened at 20795 yuan/mt overnight and fell to a low of 20795 yuan/mt before rallying to a peak of 20910 yuan/mt. It eventually settled at 20890 yuan/mt, up 10 yuan/mt or 0.05%. Trading volume decreased to 35852 lots, and open interest decreased by 948 lots to 94580 lots. SMM social inventory recorded a slight decrease, market sentiment improved, and SHFE zinc stabilized and rebounded. Pay attention to the actual performance of subsequent inventory and downstream consumption.