Zinc prices surge, boosted by supply constraints and Fed rate cut expectations.

News Topical, Digital Desk : Zinc prices have surpassed the ₹312 per kilogram mark on the MCX, their highest level since August 2022. This increase is being attributed to a global supply shortage and a potential Fed rate cut. Zinc inventories in LME-registered warehouses have been steadily declining, while SHFE zinc inventories declined by 4.17% this week, indicating a bullish market sentiment. 

Additionally, robust business activity in Europe and rising expectations of an interest rate cut by the US Federal Reserve have boosted market sentiment. Weakness in US retail sales and declining consumer confidence have raised the possibility of a Fed rate cut.  On the supply side, zinc mines in central and southwest China are expected to experience production reductions due to maintenance work. Meanwhile, the global zinc surplus narrowed significantly in September, supporting prices. Experts believe that zinc prices could rise further due to supply cuts and potential monetary policy easing.
 

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