Shanghai, Jul. 3 (SMM) – LME zinc market overnight opened high at USD 1,875/mt during Asian trading hours, but slid to USD 1,843/mt due to pressures from the shorts. Thanks to strong support at the low end, LME zinc prices later rallied to USD 1,845-1,860/mt. During European and US trading hours, LME zinc prices advanced, as market expectations over an interest rate cut in the euro zone increased following positive news from the EU summit, with prices briefly reaching USD 1,893/mt. Later, the euro-zone manufacturing PMI data hit a new low since June 2009, and meanwhile, the US ISM manufacturing data for June was 49.7, the first time below 50 since July 2009, weighing down market sentiment. As a result, LME zinc prices moved lower, erasing early gains, and finally ended at USD 1,866/mt, down USD 12.8/mt.
Markets gradually absorbed positive news from the EU summit, and the disappointing PMI data from major economies reignited market worries. SMM expects LME zinc market to make mild gains, with prices between USD 1,850-1,880/mt. SHFE three-month zinc prices will hover between RMB 14,600-14,750/mt on Tuesday, and spot discounts will remain RMB 80-100/mt.