Shanghai, Jul. 17 (SMM) – LME zinc market overnight opened higher at USD 1,884/mt during Asian trading hours, but then retreated to USD 1,863/mt. Later, LME zinc prices stabilized between USD 1,860-1,880/mt. During European and US trading hours, LME zinc prices slid to a low of USD 1,857.8/mt. The US retail sales dropped for a third consecutive month in June according to the official data, the first time since 2008. Despite disappointing data, market expectations over the QE3 increased, helping LME zinc rise to USD 1,890.3/mt. Finally, LME zinc prices finished at USD 1,887.8/mt, up USD 14.3/mt or a gain of 0.76%.
Market attention is now on the US Federal Reserve Chairman’s testimony to the Congress, and whether or not any stimulus measures will be discussed. On Tuesday, LME zinc market will move between USD 1,865-1,895/mt, and SHFE three-month zinc prices will try to climb above RMB 14,900/mt, with prices between RMB 14,750-14,950/mt, and spot discounts will be RMB 100-150/mt.