Zinc prices saw a small increase of 0.33% yesterday, closing at 243.5, driven by increased optimism in the world manufacturing sector amid signs that the manufacturing downturn may have peaked. The U.S. inflation statistics exceeded estimates for March, which delayed the expected date of a first-rate decrease from June to September, further supporting this optimistic outlook.
China produced 525,500 metric tonnes of refined zinc in March 2024, a month-over-month rise of 4.57%. Nonetheless, there was a 5.61% decrease year over year, which is indicative of more general economic factors affecting the sector.
The overall output from January to March somewhat exceeded projections despite the volatility, demonstrating the sector’s resiliency. On the other hand, domestic zinc alloy output decreased little in March compared to the previous month.
On April 9, Fitch Ratings revised its assessment of China’s sovereign credit outlook from stable to negative, highlighting growing apprehensions regarding the country’s public financing future. This change in perspective was ascribed to recent increases in government debt and large budget deficits that have worn down fiscal buffers.
