SHANGHAI, Jun 16 (SMM) – LME zinc prices fluctuated rangebound last week. America's CPI rose 5% year on year in May, the highest since August 2008, with expectations up 4.7%, and the previous value up 4.2%. The number of initial claims for unemployment benefits in the United States stood at 376,000 in the week ended June 5, and with expectations to be 370,000 and the previous value of 385,000. The recent economic data released by the European and American authorities showed strong performance. However, the market was worried that the monetary policy may change as price pressures increase. In the first half of last week, LME zinc fluctuated around $3,000/mt. LME zinc once fell to $2,977.5/mt on June 10 amid the news of governmental selling of stockpiling. LME zinc hit to $3,050/mt on June 11 and stabilised over $3,000/mt.
SHFE zinc fluctuated last week. China Automobile industry: The domestic automobile production and sales reached 2.04 million and 2.13 million units respectively in May, a decrease of 8.7% and 5.5% from the previous month and a year-on-year decrease of 6.8% and 3.1%. China's May M2 money supply increased by 8.3% on the year, with expectation of 8.1%, and the previous value of 8.1%; new yuan loans recorded 1.5 trillion yuan, up 14.3 billion yuan year on year. SHFE zinc fluctuated rangebound in the first half of last week. But it fell to the 40-day MA amid the news of governmental selling of stockpiling on June 10. Market sentiment turned positive and non-ferrous metals generally rose, pushing SHFE zinc to a new high on June 11. SHFE 2107 zinc contracts closed at 22,740 yuan/mt, a weekly increase of 1.2%.
