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ShreeMetalPrices: Zinc prices decreased due to weak Chinese demand & rise in inventories


Zinc prices decreased Today by -1.02 percent to 233.30 as increasing interest rates impede growth in the economy, China’s demand remains subpar, and stockpiles rise.

The greatest user of zinc, China, reported significantly lower imports of the metal in April. Suggesting that demand in the second-largest economy in the world is still muted. In the meantime, production increased 8.97 percent from the previous year to 540K metric tonnes in April.

In addition, Shree Metal Prices forecasts that domestic refined zinc production in May will increase by 19,800 metric tonnes to 559,800 metric tonnes, indicating a 8.65 percent year-over-year increase. After routine maintenance has been completed and Yunnan’s power supply has been eased.

According to S&P Global’s (NYSE:SPGI) forecast, the world’s demand for refined zinc will only increase by 1.3 percent in 2023. While worldwide production will only increase by a measly 1.9 percent as a result of China’s power outages.

ILZSG predicted that in 2023 there will likely be a shortfall on the world market for refined zinc. The ILZSG predicted that in 2023. There will be a shortage of 45,000 tonnes of refined zinc metal because of a greater demand than supply.

Technically, the market is experiencing new selling as open interest increased by 6.87 percent to settle at 3423 while prices are lower 2.65 rupees.

Currently, Zinc is receiving support at 232 and a move below that level could result in a test of 232.80 levels.

Resistance is now anticipated to be seen at 236.8. And a move above could result in a test of 238.8 levels.