LME zinc: At the beginning of last week, LME zinc prices opened low due to market expectations of Fed rate hikes in the foreseeable future and concerns over US economic growth. The National Association of Home Builders (NAHB) Housing Market Index (HMI) came in at 55 in June, the highest since July 2022, boosting market optimism on consumption. On the other hand, the European Central Bank’s continuous hawkish tone pushed down LME zinc prices. Housing starts in the US unexpectedly soared to a high in May, and construction permits increased, showing housing construction is improving. That helped LME zinc prices stop falling and stabilise. As of last Wednesday, LME zinc prices closed at $2,383.5/mt, down $88/mt, or 3.56%.

SHFE zinc: At the beginning of last week, SHFE zinc prices opened low and inched lower as the market had priced in a series of policy support issued two weeks ago. The People's Bank of China lowered the one-year and five-year loan prime rates (LPR) by 10 basis points to 3.55% and 4.20% respectively, in a bid to boost consumption. However, spot quotes were weak across Shanghai, Guangdong and Tianjin. Imported zinc ingots also added to supply pressure. These, combined with a rising US dollar index, lowered SHFE zinc prices during June 22-24. As of 15: 00 CST last Wednesday, SHFE zinc prices closed lower at 20,155 yuan/mt, a drop of 405 yuan/mt or 1.97%.