Zinc fell as the market digested the IMF’s global economic growth decline in 2022

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Yesterday, it stabilized -1.99% at 372.3 as the market digested the IMF’s decline in global economic growth in 2022. According to the General Administration of China Customs, China imported 21 343 tonnes of refined zinc in March, with No. 2 zinc ingot making up the majority. of total imports, with a volume of 18,592 mt. Zinc #2 ingot imports from Turkey accounted for 70.8% of March imports. On the consumer side, the downstream bought on dips and the trading market was still quiet. Bills for the first month available were still tight in Shanghai and surrounding markets.

The People’s Bank of China left its benchmark interest rates unchanged for corporate and household loans at their April setting. The one-year loan prime rate (LPR) remained unchanged at 3.7% after declines of 5 and 10 bps in December and January, respectively; while the five-year rate was held at 4.6% after falling 5 basis points in January. The PBoC last week cut its benchmark reserve requirement ratio for all banks by 25 basis points, the first time this year and effective April 25, in a bid to boost long-term funds for banks; and kept borrowing costs on its medium-term loan facility (MLF) stable for the third month in a row.

Technically the market has been in liquidation for a long time as the market saw a drop in open interest of -6.68% to settle at 1382 while prices are falling -7.55 rupees, now zinc is getting a support at 368.1 and below it could see a test of 363.8 levels, and resistance is now likely to be seen at 378.2, a move above could see prices test 384.

Trading Ideas:
# Zinc’s trading range for the day is 363.8-384.
# Zinc fell as the market digested the IMF’s decline in global economic growth in 2022.
# China imported 21,343 tonnes of refined zinc in March
# The People’s Bank of China left its benchmark interest rates unchanged for corporate and household loans at their April setting.

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