Expectations for an interest rate cut have increased, and zinc prices on both the SHFE and LME have risen [SMM Market Review - Weekly Price Commentary]

       LME Zinc: At the beginning of the week, LME zinc continued to rise, influenced by strengthened market expectations for a December interest rate cut; however, the continuous increase in overseas zinc inventories exerted downward pressure on LME zinc, leading to a decline. Subsequently, the US Fed's September retail sales month-on-month figure fell below expectations, further reinforcing market expectations for a US Fed interest rate cut, and the US dollar index pulled back. Nevertheless, LME zinc ingot inventory continued to accumulate, and LME zinc fluctuated. Then, boosted by rising expectations for a US Fed interest rate cut, LME zinc surged higher. However, overseas zinc inventories continued to increase to above 50,000 mt, coupled with US initial jobless claims dropping to their lowest level since April this year, leading to a brief pullback in market risk-off sentiment, and LME zinc declined. Subsequently, LME zinc rose. As of 15:00 this Friday, LME zinc recorded $3,040.5/mt, up $48.5/mt, an increase of 1.62%.

       SHFE Zinc: At the beginning of the week, SHFE zinc continued its upward trend from the previous week. Subsequently, as the overseas market edged lower due to continuously increasing overseas inventories, SHFE zinc opened lower with a gap. From the perspective of domestic fundamentals, recent declines in TCs, combined with market expectations for subsequent smelter production cuts, provided some support at the bottom for SHFE zinc. However, current domestic end-use consumption remains mediocre, with enterprise demand primarily driven by rigid needs, leading SHFE zinc to maintain a fluctuating trend. Then, boosted by strengthened expectations for a US Fed interest rate cut, the overseas market rose rapidly, pulling SHFE zinc to open higher with a gap. However, lacking sufficient domestic consumption support, SHFE zinc quickly declined after a brief period of fluctuation. Subsequently, SHFE zinc edged higher. As of 15:00 this Friday, SHFE zinc recorded 22,425 yuan/mt, up 35 yuan/mt, an increase of 0.16%.