SHANGHAI, Mar. 4 (SMM) – LME zinc prices opened at USD 2,065/mt on Monday, but were dragged down by the falling official and HSBC’s February PMI for China and Ukraine crisis to dip to USD 2,045.8/mt during Asian and European trading hours. During US trading hours, major US economic data were positive, and cash-to-three month backwardation on LME zinc continued to climb to a record high since August 2007, with LME zinc prices outperforming LME copper, aluminum and lead, and closing at USD 2,067.8/mt, up USD 2.8/mt or 0.13%. Trading volumes increased by 1,898 lots to 11,211 lots, and total positions decreased by 773 lots to 299,095 lots. LME zinc inventories fell by 375 mt to 757,950 mt.
SHFE 1405 zinc contract prices opened at RMB 15,070/mt on Monday evening, and then rose after dipping to RMB 15,050/mt, and finally closing at RMB 15,100/mt, down RMB 10/mt or 0.07%. Trading volumes increased by 2,762 lots to 14,328 lots, and total positions decreased by 672 lots to 109,696 lots.
LME zinc prices are expected to move between USD 2,050-2,080/mt today, and SHFE 1405 zinc contract prices will hover between RMB 15,050-15,150/mt, with spot discounts of RMB 190-230/mt against SHFE 1405 zinc contract prices.