SMM Zinc Price Forecast (Jun. 18-21)

SHANGHAI, Jun. 18 (SMM) – Greece’s general election will decide if Greece remains in the euro zone, and later news that major central banks would increase liquidity boosted market optimism. In response, the US dollar index should fall slightly in the coming week, down from the current 82 level. LME zinc prices should attempt to break through USD 1,900/mt, but keep support between USD 1,880-1,920/mt. SHFE three-month zinc contracts prices should move between RMB 14, 800-15,200/mt. With smelter inventories high, any rebound in zinc prices should allow them to increase goods supply, expanding spot discounts to RMB 80-150/mt.