SHANGHAI, Apr. 18 (SMM) – The IMF lowered its forecasts for China's economic growth yesterday, and Germany's credit rating was downgraded, with the outlook negative, pushing down the euro by 1.1%. Despite the US Federal Reserve's Beige Book reported US economy is growing, poor earnings report from Bank of America triggered concerns over US economic recovery. In this context, investor risk aversion increased, and the US dollar index jumped by 1.02%, pushing down commodity markets and LME copper prices by 3.75%. Zinc prices were more resistant to declines as LME and SHFE zinc inventories have been falling recently. LME zinc prices were weighed down to USD 1,900/mt, and finally closed at USD 1,873/mt, down USD 31.3/mt or 1.64%. Trading volumes decreased by 3,570 lots to 9,361 lots, and total positions decreased by 898 lots, to 272,195 lots. LME zinc inventories fell by 6,125 mt, to 1,121,050 mt.
Base metal markets were overshadowed by negative news, with UK retail sales data and US job data focuses of markets today. LME zinc prices are expected to move between USD 1,830-1,870/mt today, and SHFE 1307 zinc contract prices should fluctuate between RMB 14,300-14,450/mt, with spot discounts between RMB 20-60/mt against SHFE 1307 zinc contract prices.