SHANGHAI, June 29 (SMM) -- Yesterday, LME zinc prices opened at USD 1,873/mt, with the highest level and lowest level at USD 1,900/mt and USD 1,854/mt, respectively, and finally prices ended at USD 1,862/mt. G-20 summit showed different views on the economic stimulus exit, causing market players to become cautious about future economic trends. The US economic data was mixed, triggering investor concerns about whether or not the US dollar will extend strong gains. The European debt crisis eased, and the US dollar will likely fluctuate in a narrow band in the near term, allowing base metals prices to under corrections.
LME zinc prices lacked upward momentum recently, and economic news failed to provide support for zinc prices, and China’s zinc stocks remain high, all exerting downward pressure on zinc prices in the short term. However, long-term inflation expectations will help zinc prices edge higher gradually in the medium term.
SMM predicts SHFE 1010 zinc contract prices will move between RMB 15,000-15,450/mt today.
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