SHANGHAI, Mar. 17 (SMM) – LME zinc inventories have been growing by an average of 6560 mt each day since March 6, with the growth mainly from New Orleans warehouses, pushing down backwardation against LME three-month zinc contract prices to contango of USD 4/mt. LME zinc prices opened at USD 1,984/mt last Friday, then leveled out, with the high of USD 1,993/mt and the low of USD 1,975/mt, and closing at USD 1,985/mt, down USD 1.75/mt or 0.09%. Trading volumes decreased by 1,727 lots to 9,422 lots, and total positions increased by 565 lots to 315,329 lots. LME zinc inventories continued to grow by 1,200 mt to 797,900 mt.
SHFE 1405 zinc contract prices opened high at RMB 14,845/mt last Friday evening, then dropped to RMB 14,730-14,770/mt, and finally closing at RMB 14,770/mt, down RMB 15/mt or 0.1%. Trading volumes decreased by 2,162 lots to 11,714 lots, and total positions decreased by 1,360 lots to 82,078 lots.
US February industry output and New York Fed's manufacturing index in March will be released today. LME zinc prices stabilized last Friday. But investor risk appetite will be affected by Ukraine crisis. LME zinc prices are expected to move between USD 1,970-2,000/mt today, and SHFE 1405 zinc contract prices will hover between RMB 14,720-14,840/mt, with spot discounts of RMB 80-110/mt against SHFE 1405 zinc contract prices.