Fed's rate cuts expected to decrease, LME zinc fell slightly

Overnight, LME zinc opened at $2562/mt, hitting a low and high of $2525.5/mt and $2592/mt respectively, and closed at $2550/mt, down $16/mt or 0.62%. Trading volume increased to 13483 lots, and open interest grew 5022 lots to 233,000 lots. LME zinc inventories decreased by 2100 mt to 269850 mt, a decrease of 0.77%. The overall CPI in the United States unexpectedly rebounded in February. The core CPI monthly rate and annual rate were both higher than expected. The market is worried that the expected three interest rate cuts may be reduced by one.

The most-traded SHFE 2405 zinc contract opened at 21380 yuan/mt overnight and fell to 21210 yuan/mt before rallying to a peak of 21380 yuan/mt. It eventually settled at 21370 yuan/mt, up 25 yuan/mt or 0.12%. Trading volume reduced to 44471 lots, and open interest fell by 4992 lots to 74488 lots.