LME zinc: At the beginning of last week, Fed officials once again released hawkish remarks to the market, strengthening the possibility of further interest rate hikes in June. The market is relatively bearish, and LME zinc prices weakened. The final value of the annualised CPI in the euro zone in April was in line with expectations and recorded 7%. The total US housing starts in April increased to 1.401 million units. LME zinc was supported. But a strong bearishness dragged down LME zinc prices. The number of US jobless claims unexpectedly fell to 242,000 in the week ending May 13, and this showed that the US labour market is still strong. Combined with weaker expectations of a pause of Fed rate hike, the US dollar index rose all the way. The upward momentum of LME zinc was limited. With eased US debt ceiling issues, LME zinc prices rose rapidly. As of 21: 00 CST last Friday, LME zinc prices closed lower at $2,500.5/mt, with a weekly drop of 2.11%.
SHFE zinc: At the beginning of the week, the People’s Bank of China (PBOC) reported that there was no deflation in the economy, and the economic situation was basically balanced. SHFE zinc prices followed LME zinc prices down, but then rallied due to low inventory. Many overseas countries were expected to raise interest rates. From a fundamental point of view, the expected increase in supply will pressure zinc prices. As of CST 15: 00 last Friday, SHFE zinc closed at 20,685 yuan/mt, with a weekly increase of 40 yuan/mt or 0.19%.
