SHANGHAI, Apr. 17 (SMM) – LME zinc prices opened at USD 2,048/mt overnight. China’s Q1 GDP rose 7.4%, lower than last quarter but topped market expectations. State Council meeting said China’s economy is within rational range, and deposit reserve ratio at rural commercial banks and cooperative banks will be lowered, which boosted market expectations over additional stimulus policies. LME zinc prices rose sharply, touching an intraday high of USD 2,033.8/mt. European and US economic data were mixed, and Janet Yellen’s statement expressed no new opinion. LME zinc price gains narrowed during US trading hours, closing at USD 2,065/mt, up USD 15/mt or 0.73%. Trading volumes increased by 921 lots to 9,179 lots, and total positions decreased by 6,044 lots to 300,915 lots. LME zinc inventories fell by 3,325 mt to 804,650 mt.
SHFE 1407 zinc contracts became the most actively traded contracts on Wednesday evening, with prices opening at RMB 15,070/mt, touching RMB 15,110/mt due to strong long momentum, and closing at RMB 15,090/mt, up RMB 95/mt or 0.63%. Trading volumes increased by 4,908 lots to 10,922 lots, and total positions increased by 6,038 lots to 59,118 lots.
The number of US initial jobless claims last week will be announced today, and the market is expecting additional stimulus policies from China. LME zinc prices are expected to move between USD 2,055-2,080/mt today, and SHFE 1407 zinc contract prices will hover between RMB 15,050-15,150/mt, with spot discounts of RMB 60-90/mt against SHFE 1407 zinc contract prices.