SHFE Zinc Prices Lacked Momentum to Rebound

SHANGHAI, Mar 31 (SMM) - On the macro front, the number of initial jobless claims in the United States rebounded more than expected, growing for the first time over the past three weeks. This suggests that the labour market are becoming less tight. The investors bet that the Fed's interest rate hike is coming to an end, and interest rates are close to the peak. The market focus is on the inflation gauge the personal consumption expenditures index to be released this Friday. Chinese Premier Li Qiang attended the opening ceremony of the 2023 Boao Forum for Asia Annual Conference and delivered a keynote speech, saying that China is committed to safeguarding world peace and development. The banking crisis seems to draw to an end as Fed officials started to emphasise on bringing down inflation.

Overnight, LME zinc closed at $2,927.5/mt, down $34/mt or 1.15%. LME zinc inventory shed by 200 mt to 39,125 mt.

SHFE zinc opened lower in overnight trading and settled at 22,735 yuan/mt, a loss of 120 yuan/mt or 0.53%.

So far, the inflation in the United States is still high, but the macro sentiment is relatively stable. In China, although the production is affected by power rationing, smelters across the country still maintain relatively high operating rates in pursuit of high profits. The operating rates of downstream enterprises also remain high despite a slight decline last week. The growth rate of new orders is contained. Zinc prices are expected to continue moving sideways.