SHANGHAI, Apr. 16 (SMM) – LME zinc prices opened at USD 2,050/mt overnight, and inched down due to the lack of positive news. Deteriorating Ukraine crisis and market concerns over China's economic data pushed down base metals prices. LME zinc prices dipped to an intraday low of USD 2,033.8/mt, but finding strong support at the 5-day moving average, and closing at USD 2,050/mt, down USD 2.8/mt or 0.13%. Trading volumes increased by 1,370 lots to 8,258 lots, and total positions decreased by 3,446 lots to 306,959 lots. LME zinc inventories fell by 3,250 mt to 807,975 mt.
SHFE 1406 zinc contract prices opened low at RMB 14,920/mt on Monday evening. But as LME zinc prices clawed back losses, SHFE 1406 zinc contract prices were boosted and closed at RMB 14,950/mt, down RMB 45/mt or 0.3%. Trading volumes increased by 212 lots to 6,014 lots, and total positions decreased by 288 lots to 57,718 lots.
China's Q1 GDP and March economic data will be announced today. LME zinc prices are expected to move between USD 2,035-2,060/mt today, and SHFE 1406 zinc contract prices will hover between RMB 14,890-14,990/mt, with spot discounts of RMB 20-50/mt against SHFE 1406 zinc contract prices.