Zinc fell as the market worried about economic development

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yesterday stabilized -3.99% at 313.1 as the steady rise put pressure on metal prices, and the market worried about economic development on high inflation and a subdued labor market , as evidenced by the latest report on the US labor market. On the macro side, the latest data from the U.S. Bureau of Labor Statistics showed on Friday that U.S. nonfarm payrolls rose by 428,000 in April, better than market expectations of 380,000. And in the return to normal employment and high inflation, the Federal Reserve rate hikes are becoming clearer and US long-term bond yields have risen again, so the dollar index has continued to reach new highs highs for the year.

Total zinc ingot inventories across seven markets stood at 276,000 tonnes as of Monday May 9, down 5,100 tonnes from May 5 and 1,100 tonnes from April 29. Zinc inventories continued to fall this week. In Shanghai, goods can be picked up from warehouses with permits. The market was willing to receive goods under falling zinc prices with pick-ups growing, while low arrivals in Shanghai helped the market destock. In Tianjin, arrivals are stable. Under the falling market and prices and improving consumption, market stocks in Tianjin continued to decline.

Technically the market is in a fresh sell as the market saw an open interest gain of 5.41% to settle at 1227 while prices are down -13 rupees, now zinc is getting support at 306.5 and below it could see a test of 299.8 levels and resistance is now likely to be seen at 322.9, a move above could see prices test 332.6.

Trading Ideas:
# Zinc’s trading range for the day is 299.8-332.6.
# Zinc fell as the steadily rising US dollar index pressured metal prices and the market worried about economic development due to high inflation
# Commerzbank (ETR:) sees zinc prices average $3,800/t in 2022, $3,950/t in 2023
# Zinc ingot inventories in seven major markets in China fell by 1,100 tonnes

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