SMM Zinc Price Forecast (Jul. 16-20)-Shanghai Metals Market

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SMM Zinc Price Forecast (Jul. 16-20)

Price Review & Forecast 04:52:42PM Jul 16, 2012 Source:SMM

SHANGHAI, Jul. 16 (SMM) – China's 2Q GDP growth was 7.6%, and largely in line with market expectations and a sign that China's domestic economic growth has slowed. Italy's sovereign debt rating was downgraded and markets turned cautious after absorbing previous positive news. Next week, the US dollar index should continue to rise and find support at the 5-day moving average. Due to high inventories, LME zinc prices should lose support at all the moving averages and move between USD 1,800-1,850/mt. Since markets are now expecting more stimulus policies from China's central bank due to the lower GDP growth, SHFE three-month zinc contract prices should fluctuate between RMB 14,300-14,800/mt, with spot discounts narrowing to RMB 60-90/mt after the delivery date.
 

Key Words:  zinc prices  

SMM Zinc Price Forecast (Jul. 16-20)

Price Review & Forecast 04:52:42PM Jul 16, 2012 Source:SMM

SHANGHAI, Jul. 16 (SMM) – China's 2Q GDP growth was 7.6%, and largely in line with market expectations and a sign that China's domestic economic growth has slowed. Italy's sovereign debt rating was downgraded and markets turned cautious after absorbing previous positive news. Next week, the US dollar index should continue to rise and find support at the 5-day moving average. Due to high inventories, LME zinc prices should lose support at all the moving averages and move between USD 1,800-1,850/mt. Since markets are now expecting more stimulus policies from China's central bank due to the lower GDP growth, SHFE three-month zinc contract prices should fluctuate between RMB 14,300-14,800/mt, with spot discounts narrowing to RMB 60-90/mt after the delivery date.
 

Key Words:  zinc prices