SHANGHAI, Apr. 2 (SMM) – LME zinc prices opened at USD 1,983.5/mt overnight. HSBC's and official PMI for China n March was stable, with LME zinc prices falling slightly to USD 1,980/mt during Asian trading hours. During European and US trading hours, mixed economic data from Europe and the US allowed base metals to follow their own track. With the exception of LME lead and zinc prices, other base metals prices closed the day with gains. LME zinc inventories surged by 54,000 mt, reaching a high since February 7, pushing down LME zinc prices to USD 1,962/mt, and finally closing at USD 1,972.5/mt, down USD 11/mt or 0.55%. Trading volumes increased by 1,643 lots to 9,392 lots, and total positions decreased by 1,396 lots to 289196 lots. LME zinc inventories grew by 53,975 mt to 833,575 mt.
SHFE 1406 zinc contract prices opened at RMB 14,810/mt on Tuesday evening, and then dropped below RMB 14,800/mt, then moving between RMB 14,765-14,785/mt, and closing at RMB 14,775/mt, down RMB 45/mt or 0.3%. Trading volumes increased by 3,898 lots to 9,644 lots, and total positions increased by 2,256 lots to 75,646 lots.
US ADP March employment data and February factory orders will be announced today. LME zinc prices are expected to move between USD 1,960-1,985/mt today, and SHFE 1406 zinc contract prices will hover between RMB 14,730-14,830/mt, with spot discounts of RMB 90-120/mt against SHFE 1406 zinc contract prices.