SHANGHAI, Jun. 4 (SMM) – HSBC's May PMI for China hit a four-month high, but was still below 50, little boosting the market. When combined with falling LME copper prices, LME zinc prices were weighed down and moved between USD 2,075-2,090/mt, up USD 3.25/mt or 0. 16%. Trading volumes increased by 348 lots to 8,680 lots, and total positions decreased by 5,269 lots to 302,227 lots. LME zinc inventories fell by 1,350 mt to 707,075 mt.
SHFE 1408 zinc contract prices moved between moving averages with LME zinc prices. As a large number of longs entered the market, SHFE 1408 zinc contract prices edged up to RMB 15,200/mt, and closing at RMB 15,190/mt, flat with the previous trading day. Trading volumes were 6,692 lots, and total positions increased by 1,670 lots to 72,878 lots.
US ADP May employment data, ISM non-manufacturing index and April trade figures will be released today, which is expected to be mixed.
LME zinc prices are expected to move between USD 2,075-2,105/mt today, and SHFE 1408 zinc contract prices will hover between RMB 15,150-15,250/mt, with spot prices ranging from RMB 20/mt below to RMB 10/mt above SHFE 1408 zinc contract prices.