Overnight, LME zinc opened at $2535/mt, hitting a low and high of $2535/mt and $2615.5/mt respectively, and closed at $2607/mt, up $57/mt or 2.24%. LME zinc stocks were unchanged at 69,225 mt. Both the overall CPI and core CPI in the United States were lower than expected, boosting hopes that the Federal Reserve has completed raising interest rates. The U.S. dollar index fell sharply.
The most-traded SHFE 2312 zinc contract opened at 21620 yuan/mt overnight and touched a high of 21850 yuan/mt before falling and closing at 21800 yuan/mt, up 220 yuan/mt or 1.02%. The domestic market is driven by the external market. According to Bloomberg, China plans to provide at least 1 trillion yuan in low-cost financing for urban village renovation and affordable housing projects across the country. The People's Bank of China will inject capital in banks in stages, and the funds will eventually flow to home-buying households.
