SHANGHAI, Jun. 24 (SMM) – LME zinc prices last Friday opened at USD 1,830/mt. Due to short covering and since some bargain hunters entered the market, LME zinc prices edged up, touching USD 1,856/mt, and finally closing at USD 1,850/mt, up USD 15.3/mt or 0.83%. Trading volumes decreased by 540 lots, to 12,779 lots, and total positions increased by 6,023 lots, to 265,624 lots. LME zinc inventories fell by 3,100 mt, to 1,071,425 mt.
St. Louis Federal Reserve President James Bullard felt that the Federal Open Market Committee (FOMC)’s decision to slow the pace of QE3 was inappropriately timed. President Bullard understood that a more prudent approach would be to wait for more tangible signs that the economy was strengthening and that inflation was on a path to return toward target before making such an announcement. A reporter from WSJ said US Federal Reserve (Fed) Chairman Bernanke used many words that were meant to avoid being regarded as hawkish in his speech. For instance, he emphasized that low interest rate may still continue for a while after unemployment rate falls below 6.5%. This somehow helped lift market sentiment.
On the basis of developments and the prime minister's policies, the Democratic Left has decided to withdraw its ministers and general secretaries from the coalition government, Dimitris Hatzisokratis, a member of Greece's Democratic Left's executive committee, said last Friday. The Democratic Left has the smallest influence in the coalition government, with only two ministers and two deputy ministers in the Cabinet.
Power consumption in China hit 426.9 billion kwh in May, up 5% YoY. YTD power consumption through May grew 4.9% YoY, with growth rate lower than that of GDP and industrial value-added at large enterprises, due to slowing export demand and investment in property sector. China Securities Regulatory Commission (CSRC) held a press conference on June 21, stating that comments for IPO system reform has reached deadline. CSRC’s Further Promotion of IPO System Reform will be applicable to enterprises that are under review or newly approved. CSRC spokesperson denied earlier report of IPO resumption.
European shares continued to fall, while US stocks stopped dropping. LME base metals inched up following sharp declines earlier.
LME zinc prices will move between USD 1,825-1,855/mt today, and SHFE 1310 zinc contract prices should fluctuate between RMB 14,360-14,500/mt, with spot premiums against SHFE 1309 zinc contract prices between RMB 40-80/mt.