Macro Sentiment Fluctuated Back and Forth, SHFE and LME Centers Moved Higher [SMM Market Review - Weekly Price Review]

LME zinc: At the beginning of the week, LME zinc was closed for the Easter holiday; after the holiday, it briefly continued the fluctuating trend from the previous week; then, as tensions in the Middle East eased, macro sentiment improved somewhat, and LME zinc rose; however, wait-and-see sentiment persisted in the market, and prices pulled back; subsequently, continued drawdowns in ex-China zinc inventory, coupled with a weakening US dollar index, supported LME zinc to open higher with a gap; however, renewed tensions in the Middle East, combined with the possibility of a hawkish US Fed rate hike, put LME zinc under pressure; then, low ex-China inventory continued to provide some support for prices, and LME zinc rose; nevertheless, given the significant uncertainty in the market, investors maintained strong wait-and-see sentiment, and LME zinc maintained a fluctuating trend. As of 15:00 this Friday, LME zinc was recorded at $2,808.5/mt, up $52/mt, a gain of 1.60%.

SHFE zinc: At the beginning of the week, SHFE zinc was closed for the Qingming Festival in China; then, driven by a stronger LME and expectations of tightening ore supply, SHFE zinc moved higher; subsequently, supported by easing tensions in the Middle East, SHFE zinc opened higher with a gap; however, relatively ample domestic zinc ingot supply exerted some resistance on SHFE zinc's rise, and SHFE zinc maintained a fluctuating trend; then, as the Lebanon-Israel conflict escalated and Iran-Israel hostilities resumed, coupled with the possibility of a US Fed rate hike, SHFE zinc was dragged down by macro factors and LME weakness; subsequently, with strong wait-and-see sentiment in the market, SHFE zinc maintained a fluctuating trend; however, the China spot market performed poorly recently, and zinc ingot inventory continued to increase, creating significant resistance for SHFE zinc, and prices pulled back. As of 15:00 this Friday, SHFE zinc was recorded at 23,615 yuan/mt, up 25 yuan/mt, a gain of 0.11%.