LME Zinc: At the beginning of the week, influenced by last week's ISM data falling below expectations and a decline in the US dollar index, LME zinc briefly continued its upward trend. However, the US dollar index then recorded an inverted "V" reversal, causing LME zinc to fall continuously under its influence before rebounding against the trend. Subsequently, LME zinc declined again. Later, overseas LME inventory continued to decrease to 38,200 mt, and low overseas inventory supported a rebound and rise in LME zinc. Then, Trump announced the signing of the first phase of a Gaza ceasefire agreement between Israel and Hamas, which weakened market risk-off sentiment. Combined with the US dollar index rising for three consecutive days, LME zinc moved lower. After that, driven by the strong performance of other non-ferrous metals and supported by low overseas inventory, LME zinc surged higher. Subsequently, as the US government remained in a "shutdown" state, market uncertainty persisted, and LME zinc pulled back. As of 15:00 this Friday, LME zinc was recorded at $3,002.5/mt, down $28/mt, a decrease of 0.92%.
SHFE Zinc: At the beginning of the week, SHFE zinc entered a market closure due to the National Day and Mid-Autumn Festival holidays. Later, according to SMM data, as of this Thursday, the total zinc ingot inventory across seven regions monitored by SMM increased to 150,200 mt, and smelter inventory rose to over 90,000 mt. Although both domestic social inventory and smelter inventory showed significant increases, SHFE zinc continued to rise driven by the strong performance of the overseas market. Subsequently, SHFE zinc opened higher with a gap, boosted by gains in the overseas market. However, the domestic fundamental structure of strong supply and weak demand persists, with downstream consumption showing no significant standout performance. Affected by downward pressure from loose supply, SHFE zinc declined. As of 15:00 this Friday, SHFE zinc was recorded at 22,270 yuan/mt, up 445 yuan/mt, an increase of 2.04%.
