Review of LME Zinc Prices last Week

SHANGHAI, Feb 27 (SMM) - LME zinc fluctuated following the US Fed's hawkish remarks and the low LME zinc inventory early last week. Afterwards, the contract stabilised at high levels as US dollar index dropped slightly amid the influence of market sentiment. Then a series of US economic data were released. The initial value of US February Markit service PMI and Markit manufacturing PMI surpassed expectations and recorded 50.5 and 47.8 respectively, highlighting the market's expectations of the US Fed to raise the interest rates. Besides, the French smelter Auby announced that it would resume the production in early March. As a result, LME zinc price declined. The market's concerns about inflation could not be dispelled with the release of the Fed's minutes. The current US inflation is far from the level of a benign one. The European CPI data met market expectations and did not cause an uproar, but the European Central Bank released another hawkish statement that aroused market concerns. LME zinc price then fell amid market expectations of weakening consumption. As of 15: 00 last Friday, LME zinc stood at $3,031.5/mt, with a weekly drop of $49.5/mt or 1.61%.