SHANGHAI, Mar 14 (SMM) - On the macro front, the FDIC was preparing another auction of Silicon Valley Bank (SVB); US President Joe Biden delivered a speech on the banking system; former US Treasury official said that the Fed would have to halt its high interest rate policy; Nick Timiraos claimed that SVB collapse will prompt the Fed to reconsider its focus; Fed's supervision of Silicon Valley Bank was questioned; the ECB's hawkish plan is set to face fiercer opposition due to the Silicon Valley Bank crisis; Chinese Embassy in US issued notice on further adjustment of visa and entry policy for foreigners coming to China; China’s Premier Li Qiang refuted the China-US decoupling arguments.
Overnight, LME zinc opened at $2,927/mt, touching a low and a high at $2,880/mt and $2,966.5/mt before closing at $2,955.5/mt, up 1.6% or $46.5/mt. Trading volume increased to 10,760 lots, and open interest added 247 lots to 187,000 lots. LME zinc inventory decreased by 300 mt to 38,150 mt, a drop of 0.78%. The overseas expectations for rate hikes slumped with bearish sentiment, and US dollar weakened accompanied by rising non-ferrous metal prices. US CPI to be released today is worth attention.
The most-traded SHFE 2304 zinc contract opened lower at 22,700 yuan/mt and closed at 22,940 yuan/mt, up 110 yuan/mt or 0.48%. Trading volume was reduced to 66,518 lots, and open interest shed by 727 lots to 84,583 lots. LME zinc rose overnight, and found support at the low end of the Bollinger Bands. SHFE zinc prices rallied last night affected by macro factors and strengthened ferrous metals prices.
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