SHANGHAI, Mar. 5 (SMM) – LME zinc prices opened at USD 2,068/mt overnight, dipping to USD 2,058/mt during Asian trading hours. It was reported around 2:00 PM that Putin ordered exercising military troops to return to their base, meaning Ukraine crisis eased. When combined with the entry of longs in the market, LME zinc prices surged and broke through USD 2,100/mt level, touching as high as USD 2,125/mt, a record high over the past year, and closing at USD 2,119.5/mt, up USD 51.8/mt or 2.5%. Trading volumes increased by 7,820 lots to 19,031 lots, and total positions increased by 3,670 lots to 302,765 lots. LME zinc inventories fell by 4,250 mt to 753,700 mt.
SHFE 1405 zinc contract prices opened at RMB 15,230/mt on Tuesday evening. With easing Ukraine crisis, LME zinc prices advanced significantly during European and US trading hours, driving up SHFE 1405 zinc contract prices. When combined with the entry of longs and exit of shorts, SHFE 1405 zinc contract prices hit an intraday high of RMB 15,395/mt, and finally closing at RMB 15,320/mt, up RMB 225/mt or 1.49%. Trading volumes increased by 37,138 lots to 51,466 lots, and total positions increased by 11,454 lots to 123,696 lots.
Euro zone revised Q4 GDP and US February ADP employment will be released today. LME zinc prices are expected to move between USD 2,100-2,135/mt today, and SHFE 1405 zinc contract prices will hover between RMB 15,270-15,400/mt, with spot discounts of RMB 280-320/mt against SHFE 1405 zinc contract prices.