Shanghai, May 2 (SMM) – News was mixed during the Chinese May Day holiday. The CFLP's China manufacturing PMI rose in April to a 13-month high. The US April ISM manufacturing index was 54.8, better than market estimations, but construction spending rose 0.1% in March, softer than the expected 0.5% increase. During the holiday period, the US dollar index slid to 79, helping LME zinc prices rise, briefly reaching USD 2,073.8/mt. Finally, LME zinc prices closed at USD 2,057/mt, down USD 1/mt from a day earlier, but much higher than the pre-holiday price.
During the Chinese May Day holiday, LME zinc market moved higher and stood at the 5-day moving averages. In the SHFE zinc market, the most actively-traded contract is expected to open slightly higher after the holiday, with prices between RMB 15,550-15,850/mt. Spot discounts may expand to RMB 180-280/mt.