Zinc Prices Rallied Slightly, Market Players Suggested to Wait and See

SHANGHAI, Feb 28 (SMM) - On the news front, the Central Committee of the Communist Party of China and the State Council issued the "Overall Layout Plan for the Construction of Digital China” to promote the standardised and healthy development of platform companies. Shenzhen Stock Exchange encouraged real estate companies to make good use of financing and M&A tools and supported them to expand the applications of bond fund raised. BYD launched a promotion to cut the prices of its Dynasty series new energy models. At the same time, its delivery cycle has been shortened to varying degrees compared with 2022.

Yesterday, LME zinc opened steadily and then rose sharply before closing at $3,001/mt, up 1.15% or 34/mt. LME zinc inventory decreased by 50 mt to 33,350 mt overnight.

Overnight, the most active SHFE zinc contract climbed back to 23,000 yuan/mt mark and eventually finished at 23,160 yuan/mt. On the supply side, the production of some zinc smelters were restrained by power rationing, but the transactions in the spot market were weighed down by high zinc prices. Since the inventory decline cycle has not fully started, the zinc prices are expected to remain rangebound under the pressure on the macro front.