Zinc prices rose first and then fell this week, with the center of both SHFE and LME prices rising. [SMM Market Review - Weekly Price Commentary]

LME Zinc: At the beginning of the week, the US dollar fell to a four-month low, supporting nonferrous metals, while natural gas prices in Europe and the US surged due to cold weather, increasing overseas smelting costs, which pushed LME zinc higher. Subsequently, LME zinc briefly pulled back, but the US dollar continued to decline to a nearly four-year low, coupled with ongoing overseas destocking and geopolitical risks, driving zinc prices up again. Thereafter, tensions in the international situation and rising precious metals lifted zinc prices, but the US Fed did not cut interest rates this month, and the US dollar rebounded, causing LME zinc to shift into a fluctuating trend. Later, high crowding in futures and the suspension of a Chinese-invested zinc ore project in Bolivia disrupted supply, combined with a decline in overseas inventories, leading to a rapid surge in LME zinc. Then, hawkish signals from the US Fed prompted a US dollar rebound, causing LME zinc to give up gains and move lower. As of 15:00 this Friday, LME zinc recorded $3,397/mt, up $128/mt, an increase of 3.92%.

SHFE Zinc: At the beginning of the week, SHFE zinc continued last week's fluctuating trend. Subsequently, driven by LME and precious metal prices, SHFE zinc opened higher with a gap. However, weak domestic fundamentals, as downstream sectors gradually entered the off-season, put SHFE zinc under pressure and caused it to drop back slightly. Thereafter, due to a slight reduction in social inventory and LME zinc maintaining high levels, SHFE zinc strengthened again. But sluggish trading in the spot market, affected by high prices and the Chinese New Year break, indicated significant resistance, and with support from futures funds, SHFE zinc shifted into sideways movement. Later, disruptions in overseas zinc ore supply, combined with an overall rise in the nonferrous metals sector, led SHFE zinc to follow with a significant surge, eventually syncing downward as LME zinc pulled back. As of 15:00 this Friday, SHFE zinc recorded 25,835 yuan/mt, up 1,250 yuan/mt, an increase of 5.08%.