SHFE and LME zinc prices moved rangebound

LME zinc: At the beginning of last week, LME zinc prices fell as market expectations for the Fed's interest rate cut weakened. The economic sentiment index in the eurozone in December was higher than expected and recorded 96.4, and bulls helped LME zinc prices rise slightly; however, wholesale sales rate in the United States in November was higher than expected and recorded 0%, and Federal Reserve officials stated that the interest rate cut plan will slow down this year, weakening market expectations for the Fed's interest rate cut. This weighed on LME zinc prices. The continued declines in LME zinc inventory gave LME zinc prices support. During the week, LME zinc prices recorded a three-day losing streak. As of 15:00 CST last Thursday, LME zinc prices closed at $2,528/mt, down $16/mt or 0.63%.

SHFE zinc: At the beginning of the week, the domestic social zinc inventories recorded a decrease of 4,900 mt to 76,700 mt. The spot supply in some areas was tight, underpinning SHFE zinc prices. China's refined zinc in December increased by 2.05% month-on-month to 590,900 mt. Year-end stockpiling, combined with dip-buying, kept spot premiums high. That bolstered SHFE zinc prices. But the import window reopened, ensuring ample supply. SHFE zinc prices moved rangebound during the week. As of 15:00 CST last Thursday, SHFE zinc ended at 21,215 yuan/mt, down 35 yuan/mt or 0.16%.