LME Zinc: At the beginning of the week, boosted by the preliminary consensus reached in the Sino-US trade talks over the weekend, market sentiment was positive, and LME zinc rose slightly. Subsequently, as the macro tailwinds were gradually digested, prices shifted to a fluctuating trend. However, with the easing of trade tensions, market risk aversion sentiment gradually pulled back, and LME zinc edged lower after fluctuations. Yet, overseas zinc inventory decreased by 1,800 mt to around 35,000 mt, with low LME inventory providing support to prices, driving LME zinc to rise again. Later, market optimism cooled somewhat. Coupled with the US Fed cutting interest rates by 25 basis points as expected, but Powell indicated uncertainty about a rate cut in December, the hawkish stance boosted the US dollar. Along with the outcome of the Sino-US Busan meeting failing to exceed market expectations, LME zinc moved under pressure. As of 15:00 Friday, LME zinc was quoted at $3,034/mt, up $14.5/mt week-on-week, a gain of 0.48%.
SHFE Zinc: At the beginning of the week, driven by the preliminary consensus reached in the Sino-US trade talks over the weekend, market sentiment was relatively positive. SHFE zinc continued last week's upward trend and rose slightly amid optimism. Subsequently, according to SMM data, as of Monday, domestic social inventory increased slightly, while consumption across downstream sectors overall performed mediocre. However, with overseas zinc inventory running at low levels, there was strong support at the price bottom, and SHFE zinc maintained a fluctuating trend. Later, due to the upcoming Sino-US meeting in South Korea and the China Nonferrous Metals Industry Association (CNIA) proposing specific suggestions for "anti-involution", positive news again boosted market sentiment, and SHFE zinc opened higher with a gap. But the meeting results largely met expectations, and combined with the fundamental situation of strong supply and weak demand domestically, SHFE zinc lacked support, failed to maintain gains, and continuously declined. Then, driven by the LME, SHFE zinc rose slightly. As of 15:00 Friday, SHFE zinc was recorded at 22,355 yuan/mt, up 0 yuan/mt, a gain of 0%.
