News summary
U.S. core CPI fell to three-year lows in Aprilnftgamesfreetoplayandearnmoney, the market expects the Federal Reserve to cut interest rates within the year, the tight supply of domestic zinc mines has not eased, and profits at the smelting end have been compressed, which is expected to provide strong support for zinc prices.
Newsletter text
[The core CPI of the United States fell year-on-year in April, and the market expects the Federal Reserve to cut interest rates ahead of schedule]
The latest data showed that the core consumer price index (CPI) in the United States fell to 3.3 percent year-on-year in Aprilnftgamesfreetoplayandearnmoney.6%, the lowest level in three years. As soon as the news came out, the market raised its expectations for the timing of the Federal Reserve's interest rate cuts this year.
[Domestic mine output gradually recovered in May, but supply remained tight]
Entering May, domestic mine output began to pick up as domestic mines that had previously been suspended seasonally resumed production. However, some mining companies plan to resume production between May and June, and it will take some time for the mine to restart and fully restore production. Domestic ore supply still faces insufficient conditions in May.
[Zinc supply is tight, TC prices have dropped sharply, affecting production]
At the same time, the supply tension of zinc mines has not yet been alleviated. Compared with last year, the processing fee (TC) for long orders has been almost halved, which has led to the possibility of further reductions in domestic zinc ingot production in the second quarter. It is predicted that domestic zinc ingot output in May will increase by 26,800 tons month-on-month to 531,400 tons, but a year-on-year decrease of 5.86%. In the short term, as TC prices remain at a low level, the profit margin at the smelting end has been greatly reduced, which provides strong support for zinc prices.
[The market outlook is optimistic, and operational recommendations remain wait-and-see]
Despite the above challenges, the market outlook for zinc prices is still optimistic. However, in this context, investors 'operational suggestions are still mainly wait-and-see to avoid making overly aggressive decisions in an uncertain market environment.