The expectation of a soft landing in the European and American economies heats up, putting pressure on metals. Overnight, London zinc fell by 1.25%. The influx of imported goods has left traders unable to support prices, leading to a decline in spot premiums. Downstream buyers are making purchases on price dips, but the sustainability is lacking. It is anticipated that zinc prices will remain stable today.
Overnight, London zinc experienced a volatile trend, opening at $2,391 per tonne, reaching a high of $2,393.5 and a low of $2,342. It closed at $2,362, marking a decrease of $30 or 1.25%. The trading volume increased by 910 lots, reaching 9,391 lots, while the open interest decreased by 1,167 lots to 191,409 lots. In the evening session, the main Shanghai zinc contract (2308) initially rose but later retraced, closing at 20,155 yuan per tonne, down by 10 yuan or 0.05%.
Today’s spot zinc price trend is estimated as follows: Europe and America are currently caught in a contradiction between interest rate hikes and pauses. The increasing expectation of a soft landing in the economy puts pressure on most metals, leading to a decline in London zinc prices with volatile movements overnight. The continuous influx of imported goods into the domestic market has left traders unable to support prices, resulting in a decline in spot premiums. Downstream buyers are actively purchasing on price dips, but the lack of a significant improvement in demand hampers sustained buying momentum. It is anticipated that spot zinc prices will remain stable today.