LME Zinc Prices Bottomed Out Last Week amid Expectations of a Slower Rate Hike

SHANGHAI, Apr 17 (SMM) - LME zinc trading was closed last Monday. The market, affected by the US employment and economic data, highly expected the US Fed to raise the rate by 25 basis points in May, still weighing on the nonferrous metals prices. On the fundamentals, overseas demand remained poor, thus LME zinc prices moved with some declines after opening. The US CPI data hit a new low since May 2021 by recording at 5%, but the core CPI rose further and remained resilient. The US dollar index dropped amid the expected lower rate hike in May. As a result, LME zinc prices bottomed out. Later, the lower-than-expected US March PPI data of 2.7% highlighted the market expectations of the rate hike pause, leading to a fall in the US dollar. LME zinc prices thus grew. LME zinc stocks continued to decrease, and the overall inventory was at a low level, propping up LME zinc prices to a certain extent. As of 18: 00 last Friday, LME zinc prices closed at $2,878/mt, up $74/mt or 2.64% on the week.