SMM Morning Comments (Jun 20): Zinc Prices Declined Overnight

SHANGHAI, Jun 20 (SMM) – LME and SHFE zinc prices declined overnight

Zinc: Overnight, LME zinc price dipped, weighed down by the 40-day moving average. LME zinc inventories decreased by 875 mt to 80,100 mt. The strengthening of the US dollar suppresses the upward momentum of LME lead.

SHFE zinc prices closed with a slight drop overnight.

The total inventory of zinc ingots in the seven regions of was 108,600 mt, and the domestic inventory increased. Oversupplied amount of zinc in circulation in the market dragged down zinc prices. In addition, the Dragon Boat Festival holiday is approaching. Therefore, participants retreated to the sidelines, adding bearishness to LME and SHFE zinc prices.

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