Trump Officially Takes Office, Zinc Prices Declined This Week [SMM Market Review - Weekly Price Commentary]

SMM January 24 News:

LME Zinc: At the beginning of the week, influenced by the US December retail sales monthly rate falling short of expectations while December housing starts annualized exceeded expectations, LME zinc maintained a fluctuating trend. Subsequently, as Trump did not indicate higher tariffs in his inaugural speech, the US dollar index plummeted, and LME zinc quickly rose to a weekly high. However, as the market continued to struggle with uncertainties surrounding Trump's tariff policies and concerns over global economic growth and trade stability, LME zinc declined continuously. During this period, the US December Conference Board Leading Economic Index monthly rate fell short of expectations, leading to a slight upward movement in LME zinc. Later, as the market awaited specific tariff policies, the US dollar index rose, causing LME zinc to weaken further. Following this, LME zinc underwent slight fluctuations and corrections. Throughout the week, LME zinc trended downward, and as of 15:00 on Thursday, it recorded $2,864.5/mt, down $80/mt, a decrease of 2.72%.

SHFE Zinc: At the beginning of the week, SHFE zinc slightly declined. Subsequently, driven by the overseas market, SHFE zinc fluctuated upward. However, as downstream enterprises entered the Chinese New Year break this week, spot market premiums in various regions declined, transactions were sluggish, and with the significant easing of supply-side imbalances domestically, smelters' days of inventories increased, and processing fees rose, causing the center of SHFE zinc prices to shift downward. Additionally, the domestic market was similarly affected by uncertainties surrounding Trump's tariff policies, leading to a cautious market sentiment and a sharp decline in SHFE zinc. Later, a tug-of-war between longs and shorts unfolded in the market, and under these conditions, SHFE zinc underwent fluctuations and corrections. This week, SHFE zinc showed a downward trend, and as of 15:00 on Thursday, it recorded 23,705 yuan/mt, down 520 yuan/mt, a decrease of 2.15%.

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