U.S. Non-Farm Payrolls Data Weakens, Zinc Prices Drop Amid Market Uncertainty

Unexpected slowdown in U.S. non-farm payroll growth has led to a decline in zinc prices, with the market experiencing downward pressure. Last Friday, the London Metal Exchange (LME) zinc prices declined for three consecutive days, influenced by technical resistance from Bollinger Bands and weaker economic data. The LME zinc opened at $2,769 per metric ton, fluctuating within a narrow range before dipping to a low of $2,711.5. Despite some recovery, prices closed at $2,725.5, representing a 1.18% decrease amid rising trading volume but declining open interest. Concurrently, the Shanghai Futures Exchange (SHFE) zinc contract opened lower at 22,225 yuan per metric ton, experiencing a slight decline influenced by the weaker LME performance and increased domestic zinc production, which restrained price gains. Market participants are closely monitoring capital flows and supply-demand dynamics amid uncertain economic signals. These developments reflect cautious market sentiment driven by U.S. employment data and ongoing supply considerations.