Domestic Macro Improvement Combined with US Fed's Expected Interest Rate Cut, SHFE and LME Zinc Price Center Rose This Week [SMM Market Review - Weekly Price Commentary]

       LME zinc: At the start of the week, the market focused on the US Fed's interest rate cut decision this week, and LME zinc maintained a fluctuating consolidation trend. Subsequently, the US reported 7.67 million job openings in October, rising to a five-month high, highlighting the resilience of the job market. Market risk aversion sentiment pulled back, coupled with the November NFIB small business confidence index exceeding expectations, pushing the US dollar index higher, and LME zinc came under pressure and dropped back slightly. Then, the US Fed cut interest rates by 25 basis points as expected, combined with continued increases in overseas inventories, slightly easing low inventory pressure, and LME zinc continued to decline. However, data showed that US initial jobless claims last week were 236,000, the largest weekly increase since the pandemic, and the US dollar index continued its downward trend. LME zinc kept rising, before pulling back slightly. As of 15:00 this Friday, LME zinc was recorded at $3,193.5/mt, up $95/mt, a gain of 3.07%.

       SHFE zinc: At the start of the week, the positive signals released from the meeting of the Political Bureau of the CPC Central Committee, which pointed to continuing to implement more proactive fiscal policy and moderately loose monetary policy, etc., boosted market sentiment on the macro front. Combined with continued destocking of domestic social inventory, SHFE zinc rose. Subsequently, from the domestic supply side, current social inventory continued to decline, while smelter production is expected to decrease. However, spot market transactions recently have been relatively average, and downstream demand maintained a rigid pattern. SHFE zinc lacked sustained upward momentum and turned lower under pressure. Then, driven by the Central Economic Work Conference during the week, market sentiment improved, and bulls exerted force, driving SHFE zinc higher. As of 15:00 this Friday, SHFE zinc was recorded at 23,605 yuan/mt, up 300 yuan/mt, a gain of 1.29%.