SHANGHAI, Jul. 6 (SMM) – LME zinc prices overnight moved steadily between USD 1,870-1,890/mt during Asian trading hours. China's central bank suddenly decided to lower interest rates, and European central bank lowered interest rates by 25 basis points to a record low 0.75%, and overnight deposit interest rates to zero so as to boost eurozone economy. As a result, LME zinc prices touched USD 1,907/mt. US employment data in the private sector was better than expected, with speculations that the likelihood of US Federal Reserve pushing quantitative easing decreases, pushing up the US dollar index to 82.95. In this context, LME zinc prices dipped to USD 1,859.5/mt and finally closed at USD 1,866/mt, down USD 27/mt, or 1.43%.
LME zinc prices should move between USD 1,860-1,880/mt today, and SHFE three-month zinc contract prices should move between RMB 14,860-800/mt, with spot discounts narrowing to RMB 80-100/mt.