Zinc holds near 5-week high

On the London Stock Exchange, zinc futures for three-month delivery rose 2% to $4,464 per ton, up for the fourth consecutive session.

The price of zinc traded in May on the Shanghai Futures Exchange increased 0.1% to 28,435 CNY (equivalent to 4,468.59 USD)/ton. In the previous session, the price of zinc rose to 28,995 yuan, the highest level in nearly 15 years.

Zinc stocks at London warehouses fell to 117,850 tonnes - the lowest level since June 2020.

Rising prices of gas used to generate electricity and power zinc smelters in Europe have limited production.

China - the leading metal consumer requires tightening regulations on epidemic prevention, health control, travel schedules, encouraging the implementation of "one route, two destinations" to limit exposure; Request people in areas with domestic cases, or border localities not to come or return to the city....

"Given the current severity of the outbreak in China, the supply chain of electronics and automobiles will be significantly disrupted by supplier shutdowns over the next 7-10 days," said Julie Gerdeman. - CEO of supply chain analytics company Everstream - warns.

Lockdowns impact the global supply chain from multiple angles, from factory shutdowns, disruptions to port operations and truck shortages," said Freightos CEO Zvi Schreiber. Inflation also increased with goods imported from China.

The closure of factories in Shanghai and nearby cities could also disrupt the supply chains of electronics and autos. "Beijing's problem is that there are so many manufacturing facilities across the country," Martin said.

Faced with that situation, China said it would promptly cut the reserve ratio of banks and other policy tools to support the economy amid the COVID-19 outbreak.
Vinanet