SHANGHAI, Jul. 25 (SMM) – LME zinc prices overnight opened at USD 1,812/mt. As HSBC released China's PMI during July was better than forecast, LME zinc prices climbed and moved between USD 1,820-1,830/mt. Spanish government bonds yields surged, so the country is in need for bailout, pushing down the euro to a two-year low. Besides, euro zone PMI during July hit a three-year low, while German comprehensive PMI fell for the sixth straight month to hit a record low since June 2009. US manufacturing growth was the lowest since December 2012. As a result, LME zinc prices plummeted and closed at USD 1,800/mt, down USD 14/mt or 0.77%.
LME zinc prices should move between USD 1,780-1,900/mt today, and SHFE three-month zinc contract prices should move between RMB 14,300-14,500/mt, with spot discounts narrowing to RMB 30-60/mt.