SHANGHAI, Mar 3 (SMM) - On the macro front, the Ministry of Human Resources and Social Security in China stated that according to favourable policy for personal pension system, the current payment cap is 12,000 yuan/year, which may be adjusted in due course in the future. Some senior Fed officials said that rate hikes may be suspended this summer, resulting a significant rebound in US stock market. European Central Bank (ECB) President Lagarde said rate cuts were unlikely unless the inflation rate stood at 2% at least. According to ECB minutes, it is too early to worry about the risks of excessive interest rate hikes. The core inflation rate in the eurozone rose more than expected in February, hitting a record high at 5.6%.
LME zinc dropped sharply in overnight trading and closed at $3,046.5/mt, down 2.79% or $87.5/mt. LME zinc inventory gained by 2,525mt to 35,750 mt.
SHFE zinc opened lower overnight and continued to fall before finishing at 23,170 yuan/mt.
Affected by the strong employment data, the US dollar was still firm, and in turn zinc prices continued to be weighed down. In China, the market still had strong expectations robust consumption before the Two Session completed. Market players are suggested to wait and see.
