SHFE and LME Zinc Prices Plummeted Amid Strong Short Selling

LME zinc: The LME market closed last Monday. The Federal Reserve’s hawkish tone reduced market expectations for interest rate cuts. The Sentix investor confidence index in the eurozone in May was lower than expected and recorded -13.1. NFIB's Small Business Optimism Index in April in the US fell short of expectations and stood at 89. Risk aversion grew amid market concerns over economic prospects. LME zinc prices dropped. Subsequently, the annualised April CPI in the United States before seasonal adjustment fell for ten consecutive months in a row and recorded 4.9%, which was lower than market expectations. The debt crisis issue is still severe. In April, the PPI hit the lowest level in more than two years. A higher US dollar significantly lowered LME zinc prices. As of 19: 00 CST last Friday, LME zinc prices closed at $2,539.5/mt, a weekly decrease of $141.5/mt, or 5.28%.

SHFE zinc: According to SMM data, China’s refined zinc output in April stood at 540,000 mt, and is expected to be 559,800 mt in May. The increase in supply will put pressure on zinc prices. SHFE zinc prices moved rangebound. In the second half of the week, macro data drove SHFE zinc prices to open low. Meanwhile, consumption gave little support for zinc prices amid poor orders and slow sales at downstream producers. Domestic informal financing fell far short of expectations. As such, SHFE zinc prices dropped below 20,700 yuan/mt to a recent low. As of 15: 00 CST last Friday, SHFE zinc prices closed lower at 20,650 yuan/mt, with a weekly drop of 635 yuan/mt or 2.98%.

More popular news:

'Bond King' Jeffrey Gundlach Says Sharp Fed Rate Cuts By Year-End Will Push Up Gold Prices

Rio Tinto Warns of Risks for Paying High Premiums for Lithium Mines after Plunging Lithium Prices Triggered Acquisition Rush

Citigroup Warns European Commercial Real Estate Values Will Plummet 40%, But Sees Medium-Term Opportunity

IMF: US Debt Defaults Will Take a Heavy Toll on Global Economy, Global GDP Growth Can Plunge

Goldman Sachs Warns of Serious Risks US Dollar Will Lose Reserve Currency Status on Debt Ceiling Standoff

Goldman Sachs Sees European Gas Prices Tripling, Gives Price Forecast in H2 2023

BofA Sharply Lowers Forecast for Oil Price, Global Oil Consumption in 2023

UBS Raises China GDP Growth Forecast, Sees Earnings from China Stock Market Soaring, RMB Appreciating

Global Aluminium Inventory to Plunge Further amid Supply Headwinds, LME Aluminium Prices to React Fast

Takeaways of Warren Buffett and Berkshire Hathaway’s 2023 Annual Meeting

High Lithium Ore Prices in Australia will Drive Lithium Prices Rebound, Reasons Prevent Output to Grow

Sharp Output Cuts Led to Lithium Ore Shortages, High Import Prices Drove Lithium Salt Producers to Shut Down

US Treasury Bill Rates Soar to Record High on Debt Ceiling Jitters

Russia is Accelerating Technology to Become Top Liquefied Natural Gas Supplier by Tripling Exports By 2030

No Other Country can Replace China's Manufacturing Industry Including India

Global Manufacturing PMI in April Points to Greater Downward Pressure on Global Economy

SMM Daily Comments (May 5): LME Base Metals Rose across the Board, SHFE Nickel Plunged

SMM Daily Comments (May 9): Most LME Base Metals Closed Lower, SHFE Nickel Prices Plunge, Ferrous Metals Mostly Rose

SMM Daily Comments (May 12): SHFE Base Metals and Silver Prices Crashed, Most LME Base Metals Prices Went Down, Oil Posted 3-Day Losing Streak

A Bull Gold Market Has Just Begun 

Fitch Ratings Raises Saudi Arabia IDR, Says World Bank Reason and High Dependence on Oil Remain a Weakness for the Country's Rating

Copper Shortage Is Irreparable Even after Biggest Mergers and Acquisitions, Here’s Why

Buffett Talks about Banking Crisis and Bank Stocks He Bought, Munger Warned Commercial Real Estate: the City Will Be Seriously Hollowed Out