Macro and Fundamentals Resonate, SHFE and LME Zinc Price Center Rises [SMM Market Review - Weekly Price Commentary]

LME Zinc: At the beginning of the week, driven by gains in other metals, LME zinc opened higher with a gap and continued to rise; subsequently, as recent LME inventory increased to over 100,000 mt, the supply-demand imbalance eased somewhat, and LME zinc declined continuously; then, the US December Dallas Fed business activity index recorded -10.9, lower than the previous value and expectations, the market digested the impact of the data, the US dollar index fell, and LME zinc moved higher; subsequently, the US Fed released the December meeting minutes, which showed serious divergence among Fed officials, with most supporting further interest rate cuts, but data showed the US December Chicago PMI recorded 43.5, significantly higher than the previous value and expectations, the US dollar index accelerated its rise, and LME zinc moved lower; then LME zinc rose slightly. As of 15:00 this Wednesday, LME zinc recorded $3,108/mt, up $21.5/mt, an increase of 0.70%.

SHFE Zinc: At the beginning of the week, domestic social inventory continued to decline, and driven by the strength of copper and other metals, SHFE zinc continued to rise; subsequently, as overall end-user demand performance was relatively average, and demand in the north pulled back slightly due to environmental protection-driven production restrictions, SHFE zinc's rise was hindered and it fell continuously; then, recent domestic macro sentiment was relatively positive, coupled with the rise in LME zinc, with macro support and the correlation between SHFE and LME, SHFE zinc stopped falling and rose; subsequently, SHFE zinc maintained a brief fluctuating trend; however, looking at smelter conditions next month, domestic refined zinc production is expected to increase slightly, and SHFE zinc was suppressed and fell slightly; then SHFE zinc rose slightly. As of 15:00 this Wednesday, SHFE zinc recorded 23,275 yuan/mt, up 105 yuan/mt, an increase of 0.45%.