SHANGHAI, Mar 29 (SMM) - Yesterday, Ali split its company into six business groups that may explore IPOs independently. Alibaba’s shares popped on the news and closed more than 14% higher. The US president Joe Biden warned that the banking crisis was not over yet, and the officials of Federal holding hawkish stance said that interest rate shall not be used to solve bank pressure. US regulators hinted at the Silicon Valley Bank hearing that new banking reforms are on the way. Currently, the economic growth is lacking momentum, compounded by the shattered banking industry. It is forecast that the average growth rate of the global economy in the next 10 years will be 2.2%, which is far lower than the peak of 4.5% in 2010 and may hit a 30-year low.
LME zinc inched lower after opening last night but eventually rallied and closed up $6/mt or 0.21% at $2,917/mt after touching a high of $2,945/mt. LME zinc inventory shed by 100 mt to 39,550 mt.
SHFE zinc jumped after opening in overnight trading and finished at 22,750 yuan/mt, a rise of 175 yuan/mt or 0.78%.
So far, the macro front has been relatively stable, and a weaker US dollar has caused zinc prices to strengthen.
From a fundamental point of view, the domestic average operating rate of downstream enterprises, albeit slipping slightly, still stood high last week, a sign of good demand for zinc ingots. Although the domestic production is affected by power rationing, smelters across the country still maintain relatively high operating rates in pursuit of high profits.
SMM estimates that SHFE zinc prices will be rangebound.
