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Quote on Zinc" by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd for your reference. 

When compared to the other metals in the pack, the metal used to galvanize steel has been drifting downward during the past few sessions. Zinc prices kept moving lower this week after reversing course from the previous week’s lows. LME Zinc prices have fallen more than 8% during this time, while MCX Zinc prices have fallen more than 7%. Prices have nearly reached 2-yearlows as a result of this deterioration.

Since inventories reached historic lows, they have increased by over 70% to 50,000 tonnes at the LME-registered warehouses for the first time in six months, which has hurt the price of the metal. Additionally, the global economic outlook is uncertain, central banks are predicted to continue tightening monetary policy, and the pace of China’s economic recovery has been disappointing.

Following a faster-than-expected recovery in Chinese GDP was eclipsed by weakening manufacturing growth in March. The official NBS Manufacturing PMI dropped from 52.6 in February to 51.9 in March. Zinc prices both at home and abroad declined as there were no signs of revival.

However, the negative risk was mitigated to some extent, as Glencore's first-quarter zinc production falling 15% to 205,300 MT and the PBOC infusing net liquidity of 178 billion yuan thus far this year, and keeping the interest rates steady for an eighth consecutive month.

However, as these headwinds weaken, there are rising concerns that the market may tighten, with the possibility that the low level of inventories may make this situation worse.

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