SMM Morning Review - 2010/7/1 Zinc Market

SHANGHAI, July 1 (SMM) -- Yesterday, LME zinc prices opened at USD 1,745/mt, with the highest level and lowest level at USD 1,795/mt and USD 1,722/mt, respectively, and finally prices ended at USD 1,782/mt.

SHFE zinc prices opened lower but moved higher on Wednesday after global financial markets slumped on Tuesday, partly reversing previous price losses, but figures from ADP Employer Services showed that companies in the US added only 13,000 workers in June, much lower than the estimate level of 60,000, causing futures market prices to fall further. LME base metals prices regained some losses later, with LME zinc prices finally closing with gains.

China's Purchasing Managers' Index will be released today, and investors are skeptical about the sustainable growth of China's economy given recent bearish macro economic conditions, and once China's PMI is released to be weaker, base metals markets will be heavily dampened. In addition, the US government will release June employment report on Friday, also exerting impact on market sentiment. In this context, base metals prices will lack upward momentum in the near term, with any increases expected to be limited.           

To contact the writer on this report: angelawang@smm.cn

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