SHANGHAI, Jun. 11 (SMM) – LME zinc prices opened at USD 2,137/mt overnight, then hovered between USD 2,110-2,140/mt. China's inflation rate in May was positive, but little boosted market sentiment. Besides, the US dollar index closed with gains for three consecutive days, weighing down base metals prices. LME zinc prices once dipped to as low as USD 2,107.8/mt, but found strong support from the 5-day moving average, and closing at USD 2,133/mt, down USD 3.5/mt or 0.09%. Trading volumes decreased by 4,421 lots to 10,602 lots, and total positions increased 6,707 lots, to 31,000 lots. LME zinc inventories fell by 2,475 mt to 695,750 mt.
SHFE 1408 zinc contract prices opened at RMB 15,390/mt on Monday evening, then touched RMB 15,560/mt, a record high since last April, and closing at RMB 15,555/mt, up RMB 190/mt or 1.24%. Trading volumes increased by over 60,000 lots to 100,000 lots, and total positions increased by over 30,000 lots to 123,000 lots.
UK's April unemployment rate to be released today is expected to be positive, but a rising US dollar index will push down base metals prices. LME zinc prices are expected to move between USD 2,110-2,150/mt today, and SHFE 1408 zinc contract prices will move between RMB 15,450-15,650/mt, with spot discounts between RMB 80-120/mt against SHFE 1408 zinc contract prices.