Shanghai, Apr. 24 (SMM) – the reading of HSBC China’s manufacturing PMI data for April below 50% and the disappointing news from the euro zone reignited market fears. The preliminary Markit euro-zone PMI data for April dropped to 47.4 from 49.1 in March. Meanwhile, Dutch Prime Minister Mark Rutte tendered his government's resignation after failing to reach agreement on reducing the country's budget, and this triggered market speculation that the country may lose its AAA credit rating. As a result, LME zinc prices retreated, and pared earlier gains, and finally ended at USD 1,990.5/mt, down USD 33/mt.
SHFE three-month zinc prices are expected to fall on Tuesday due to the unfavorable China’s manufacturing PMI data, with prices expected between RMB 15,400-15,600/mt, and spot discounts are expected to narrow to RMB 150-250/mt.