Tariff Disturbances Persist, SHFE and LME Maintain Fluctuating Trend [SMM Market Review - Weekly Price Commentary]

SMM March 28 News: LME zinc: At the beginning of the week, LME zinc experienced a brief fluctuating trend. Subsequently, the market had certain expectations for the upcoming release of the US March S&P Global Manufacturing PMI, while overseas social inventories continued to decrease. Multiple factors jointly affected zinc prices, leading to a rise in LME zinc. Then, the preliminary value of the US March S&P Global Manufacturing PMI recorded 49.8, the lowest in three months, while the preliminary value of the US March S&P Global Services PMI recorded 54.3, the highest in three months. US March business activities rebounded, the US dollar index rose, and LME zinc continued to decline. Subsequently, influenced by the reduction in overseas inventories, LME zinc slightly increased. Then, Trump's tariff policy continued to disturb the market, and data showed that the annualized total of new home sales in the US February and the March Conference Board Consumer Confidence Index both fell below expectations, strengthening market risk aversion sentiment. LME zinc maintained a fluctuating trend. Trump stated that a 25% tariff would be imposed on all imported cars, and the reciprocal tariff plan would be "loose." The US dollar index continued to rise, and in this context, overseas inventories continued to decrease, with LME zinc maintaining a fluctuating trend. As of 15:00 this Thursday, LME zinc recorded $2,949/mt, up $21.5/mt, an increase of 0.73%. SHFE zinc: At the beginning of the week, SHFE zinc continued to rise under the influence of the LME. Subsequently, according to SMM data, as of March 24, the total inventory of zinc ingots in seven regions monitored by SMM was 128,900 mt, a decrease of 2,100 mt compared to March 20. The reduction in domestic inventories provided some support for zinc prices, but expectations of a widening supply side still existed. Recently, TCs continued to rise, and SHFE zinc maintained a fluctuating trend. Then, the US March S&P Global Manufacturing PMI was lower than expected, while the Services PMI was higher than expected. March business activities rebounded, the US dollar index slightly rose, and although end-use consumption did not show a clear peak season performance, downstream demand gradually improved. SHFE zinc maintained a fluctuating trend. Subsequently, according to SMM data, as of March 27, the social inventory in seven domestic regions was 130,000 mt, an increase compared to Monday. Meanwhile, the US dollar index rose under the news of Trump's tariff policy on imported cars, and SHFE zinc slightly pulled back. As of 15:00 this Thursday, SHFE zinc recorded 24,105 yuan/mt, up 335 yuan/mt, an increase of 1.41%. Click to view the SMM Metal Industry Chain Database.