Recent Macro Disturbances Persist, SHFE and LME Center Significantly Rises [SMM Market Review - Weekly Price Commentary]

LME Zinc: At the beginning of the week, supported by tightening geopolitical tensions internationally and boosted by the strong rally in base metals such as copper and aluminum, continuous inflows of bullish funds into futures drove the price center steadily higher, extending a four-day winning streak into a five-day winning streak. During this period, US Fed Governor Milan signaled a dovish outlook, indicating the need for interest rate cuts exceeding 100 basis points in 2026, further bolstering LME zinc's rise. Subsequently, as the US dollar index fluctuated higher, the market gradually digested previous macro disturbances, bullish profit-taking sentiment intensified, and overseas zinc inventory increased, weakening fundamental support. LME zinc ended its upward trend, and the price center declined accordingly; then LME zinc edged higher. As of 15:00 this Friday, LME zinc recorded $3,159.5/mt, up $32.5/mt, an increase of 1.04%.

SHFE Zinc: At the beginning of the week, driven by the continuous rise in LME zinc, SHFE zinc prices broke through the high since February last year, with the daily candlestick's center significantly higher. Although fundamentals showed no significant change, macro tailwinds coupled with spillover effects from other base metals provided sufficient bullish momentum, driving SHFE zinc higher. Subsequently, expectations of a slight increase in domestic supply emerged, end-use consumption showed mediocre performance, social inventory continued to accumulate after the holiday, and spot transactions were mostly for rigid demand, resulting in insufficient fundamental support for prices. Combined with the transmission effect of weaker LME zinc, SHFE zinc came under pressure and turned weaker, with the price center declining; then SHFE zinc edged higher driven by overseas markets. As of 15:00 this Friday, SHFE zinc recorded 23,970 yuan/mt, up 695 yuan/mt, an increase of 2.99%.