SHANGHAI, Mar. 12 (SMM) – LME zinc prices opened low at USD 2,045/mt overnight, plummeting before leveling out during Asian trading hours. During European and US trading hours, LME zinc prices once touched USD 2,061.8/mt, but plunged with LME copper prices later due to growing concerns over China's demand, dipping to a new low recently below USD 1,995.5/mt, and closing at USD 2,000.5/mt, down USD 44.8/mt or 2.19%. Trading volumes increased by 254 lots to 17,732 lots, and total positions increased by 3,536 lots to 318,855 lots. LME zinc inventories grew by 6,450 mt to 798,825 mt.
SHFE 1405 zinc contract prices opened at RMB 14,920/mt on Tuesday evening, then inched down since a large number of shorts entered the market, and finally closing at RMB 14,765/mt, down RMB 110/mt or 0.74%. Trading volumes increased by 4,470 lots to 33,522 lots, and total positions increased by 1,654 lots to 103,068 lots.
Ukraine crisis continues to affect the market, and Tianwei Baobian Electric Company's bond trading was suspended. When combined with China's sluggish February import and exports data, concerns over China's demand increased. LME zinc prices are expected to move weakly between USD 1,970-2,015/mt today, and SHFE 1405 zinc contract prices will hover between RMB 14,650-14,750/mt, with spot discounts of RMB 20-60/mt against SHFE 1405 zinc contract prices.