SHANGHAI, Jun 21 (SMM) – LME and SHFE zinc prices dropped overnight
Zinc: Overnight, LME zinc price dipped, weighed down by the 5-day moving average. LME zinc inventories decreased by 75 mt to 80,025 mt. LME zinc cash-to-three month contango was $15.5/mt, revealing soft demand.
SHFE zinc prices closed with a slight drop overnight, confronting with resistance from the 40-day moving average.
At present, impact of favorable macro news waned, and market sentiment cooled. In addition, operating rate of smelters remained high, and amount of imports will pick up. Therefore, rising amount of zinc in circulation in the market will put a downward pressure on zinc prices again.
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