SHANGHAI, Jun. 18 (SMM) – LME zinc prices last Friday opened higher at USD 1,892.8/mt, and moved between USD 1,890-1,900/mt after opening. Expectations that the US Federal Reserve Board will likely announce new stimulus policies at its policy meeting this week, and University of Michigan released that June CCI fell more sharply than expected, while New York Federal Reserve Bank showed that the manufacturing index was lower than expected, all pushing down the US dollar index. As a result, LME zinc prices once touched an intraday high of USD 1,911.5/mt, but rolled bank gains to close at USD 1,895/mt, up USD 12/mt. The result of Greece's general election was that the Democratic Party won by a support of 31.1%, and is able to found a coalition government with other parties which are in favor of the bailout plan and won the majority of votes. Greece's turmoil eased as the party which supports the international bailout plan and credit tightening policies won the election so that it can found a coalition government, causing concerns that Greece will exit the Euro zone to ease.
As market concerns eased post Greece's general election, LME zinc prices should move between USD 1,910-1,920/mt today, and SHFE three-month zinc contract prices should move between RMB 14,950-15,150/mt, with spot discounts expanding to RMB 100-140/mt.