US December ADP Employment Data Falls Short of Expectations, Zinc Price Center Declines Both Domestically and Internationally This Week [SMM Market Review - Weekly Price Commentary]

SMM January 10 News:

LME Zinc: At the beginning of the week, influenced by the US December ISM Manufacturing PMI released last Friday, which exceeded expectations and hit a nine-month high, market risk aversion sentiment weakened, and the center of LME zinc prices slowly moved downward. Subsequently, as US media reported that Trump would impose general tariffs only on key imported goods, the US dollar index plunged, briefly falling below the 108 mark, driving LME zinc prices upward. However, Trump later posted on social media that reports of tariff policy reductions were untrue, leading to a rebound in the US dollar index. Meanwhile, the US November JOLTs job openings data and December ISM Non-Manufacturing PMI exceeded expectations, causing LME zinc prices to decline further. Later, the US December ADP employment data fell short of the expected 140,000, recording an actual figure of 122,000, the lowest level since August 2024. Under these circumstances, the decline in LME zinc prices gradually halted and slightly rebounded. As of 15:00 on Thursday, LME zinc recorded $2,849/mt, down $42.5/mt, a decrease of 1.47%.

SHFE Zinc: At the beginning of the week, SHFE zinc briefly maintained the fluctuating trend from the previous week. Subsequently, driven by the overseas market, SHFE zinc opened higher with a gap. However, as the Chinese New Year break approached, factories in various downstream zinc sectors gradually began to close, weakening the fundamental support for zinc prices, causing the center of SHFE zinc prices to move downward. Later, as domestic spot zinc continued to decrease and downstream stocking entered its final stage, SHFE zinc maintained a fluctuating trend. Subsequently, influenced by multiple US economic data exceeding expectations, the rise in the US dollar index pressured zinc prices, causing SHFE zinc to decline further. Afterward, SHFE zinc maintained fluctuating movements. Later, as China's December CPI year-on-year growth met expectations at 0.1%, market sentiment gradually turned positive. Meanwhile, the US December ADP employment data fell short of expectations, and SHFE zinc rose under the influence of market sentiment and the overseas market. As of 15:00 on Thursday afternoon, SHFE zinc recorded 24,110 yuan/mt, down 555 yuan/mt, a decrease of 2.25%.

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