SHANGHAI, May 12 (SMM) – LME zinc prices opened at USD 2,355/mt, and fluctuated between USD 2,340-2,350/mt during Asian trading hours, which reached USD 2,368/mt. During European and US trading hours, Fed official’s hawkish statement supported the US dollar index, weighing down base metals. When combined with ongoing Greek crisis, the euro pulled down. LME zinc prices fell back to USD 2,300/mt and closed at USD 2,307/mt, down USD 44/mt or 1.87%. Trading volumes decreased 2,901 to 85,887 lots, and total positions grew 1,370 to 320,000. LME zinc inventories fell 2,525 to 45,220 mt.
SHFE 1507 zinc contract prices opened at RMB 17,000/mt Monday evening, then slipped to as low as RMB 16,875/mt, and closed at RMB 16,885/mt, down RMB 150/mt or 0.88%.
The interest rate cut by the PBOC failed to boost base metals prices. Greek crisis continued to plague the market.
COMEX crude oil prices fell 0.2% to close at USD 59.25/bbl. Gold prices dropped 0.5% to close at USD 1,183/oz. European stocks climbed 0.3% whilst Greek stocks plunged 2.5%. The US dollar index finished the day up 0.27% at 95.02. LME base metals prices slipped across the board.
LME zinc prices are expected to move between USD 2,280-2,320/mt today. SHFE 1507 zinc contract prices will fluctuate between RMB 16,800-16,900/mt, with spot discounts of RMB 120-80/mt against SHFE 1507 zinc contract prices.