Federal Reserve's hawkish speech weighed down LME zinc prices

Overnight, LME zinc opened at $2,530/ton and reached a high of $2,570/ton. The contract finally closed down at $2,512.5/ton, down $19.5/ton, or 0.77%, with trading volume of 9293 lots and open interest were 226,000 lots. LME zinc stocks increased by 5975 tons to 107525 tons. The increase was 5.88%.

Federal Reserve officials stated that the possibility of a soft landing in the United States is 60%, and there is a 40% possibility that interest rates will need to be significantly raised. The speech was hawkish and drove the dollar index to rise. Nonferrous metals were under pressure.

Last evening, the most active SHFE 2311 zinc contract prices opened at 21830 yuan/mt before closing at 21575 yuan/mt, down 265 yuan/mt or 1.21%. Trading volume was 83,900 lots, and open interest were 126,000 lots. Spot trading was quiet.