LME Zinc Prices Move on Macro Factors

SHANGHAI, Mar 20 (SMM) - The Silicon Valley Bank (SVB) collapse aroused pessimism in the market early last week, which, coupled with the slowdown in wage growth and rising unemployment data, made the market believe that the US Fed is less likely to raise interest rates by 50 basis points. As a result, LME zinc prices moved rangebound. Afterwards, the annual rate of February US CPI without seasonal adjustment recorded 6%, which was basically in line with market expectations, and LME zinc prices stabilised. The February US PPI recorded an annual rate of 4.6%, which was lower than expected. US inflation unexpectedly dropped, but then Credit Suisse detonated a banking meltdown in Europe. The US dollar index quickly fell amid the risk aversion sentiment, hence the commodity prices declined in the bearish market and LME zinc prices also dropped under pressure. In the last few trading days of last week, the market's worries about the Credit Suisse issue eased, and the fundamentals improved, thus LME zinc prices bounced back.