SHANGHAI, Mar. 25 (SMM) – LME zinc prices opened at USD 1,948/mt overnight. HSBC's March PMI for China was only 48.1, hitting an eight-month low. PMIs from Germany and the US were above 50, but fell short of February's and expectations, dragging down LME zinc prices. LME zinc prices touched USD 1954.3/mt after opening, meeting resistance at the 5-day moving average, and dipping to a near-term low of USD 1,937/mt, and closing at USD 1,945.3/mt, down USD 6.8/mt or 0.35%. Trading volumes decreased by 5,098 lots to 7,626 lots, and total positions increased by 8,041 lots to 292,935 lots. LME zinc inventories fell by 3,675 mt to 776,400 mt.
SHFE 1406 zinc contract prices opened at RMB 14,775/mt on Monday evening, and touched RMB 14,815/mt before falling to RMB 14,750-14,760/mt, and finally closing at RMB 14,750/mt, down RMB 10/mt or 0.07%. Trading volumes decreased by 602 lots to 13,200 lots, and total positions increased by 774 lots to 78,026 lots.
Global economic data were sluggish, with LME zinc prices meeting resistance at the 5-day moving average. US February new home sales and Conference Board's March CCI will be released today. LME zinc prices are expected to move between USD 1,935-1,955/mt today, and SHFE 1406 zinc contract prices will hover between RMB 14,700-14,800/mt, with spot discounts of RMB 120-150/mt against SHFE 1406 zinc contract prices.