Geopolitical News Keeps Disrupting, SHFE and LME Maintain Fluctuating Trend [SMM Market Review - Zinc Weekly Review]

LME zinc: At the start of the week, mixed news on Middle East peace talks reignited short-term risk-off sentiment, with sporadic conflicts ongoing; meanwhile, uncertain tariff prospects led LME zinc to continue rising; subsequently, the market gradually digested the complex news, and LME zinc turned to fluctuate; but the stalemate in US-Iran negotiations bolstered the US dollar to strengthen persistently, coupled with US ADP employment data exceeding expectations, fueling inflation concerns and weakening expectations for US Fed interest rate cuts this year, the stronger dollar weighed on zinc prices, causing LME zinc to decline; then, gradually declining inventories outside China supported LME zinc to edge up and recover some losses; however, tensions in the Middle East remained in a "cease but not stop" state, and LME zinc moved lower again; as of 15:00 this Friday, LME zinc recorded $3,557.5/mt, up $14/mt, a gain of 0.40%.

SHFE zinc: At the start of the week, driven by the LME, SHFE zinc edged up; subsequently, domestic inventory increased, and SHFE zinc was hindered from rising and pulled back; then, driven by the LME, SHFE zinc opened higher with a gap, but domestic inventory pressure remained significant and end-use consumption support was insufficient, causing prices to gradually move lower; later, affected by regional tensions, market risk-off sentiment thickened, and the LME drove SHFE zinc to surge again; however, operating rates in various downstream zinc sectors in China continued to decline, leaving SHFE zinc with insufficient bottom support, and prices continued to pull back; subsequently, again driven by the LME, SHFE zinc opened higher with a gap, but domestic inventory remained at a high level above 260,000 mt, and SHFE zinc moved lower once more. As of 15:00 this Friday, SHFE zinc recorded 24,780 yuan/mt, down 185 yuan/mt, a decline of 0.74%.