SHANGHAI, Jun. 12 (SMM) – The World Bank lowered its expectations of global economic growth to 2.8%, down from previous 3.2%, dragging down US stocks. Besides, the housing vacancy rate in China’s cities and towns reached 22.4% in 2013, causing market concerns over China’s property market to grow, and depressing market sentiment.
LME zinc prices opened at USD 2,131/mt overnight, then fell to USD 2,110/mt, down from USD 2,146/mt, and closing at USD 2,117.25/mt, down USD 15.75/mt or 0.74%. Trading volumes decreased by 204 lots to 10,398 lots, and total positions increased 4,866 lots, to over 31,000 lots. LME zinc inventories fell by 1,100 mt to 694,560 mt.
SHFE 1408 zinc contract prices opened at RMB 15,590/mt on Wednesday evening, then hovered around RMB 15,600/mt, and closing at RMB 15,600/mt. Trading volumes decreased by over 20,000 lots to 87,000 lots, and total positions increased by over 4,824 lots to 14,500 lots.
US May core retail sales and the number of initial jobless claims last week will be announced today, while the market is awaiting the result of investigation into China’s financing fraud. LME zinc prices are expected to move between USD 2,100-2,135/mt today, and SHFE 1408 zinc contract prices will move between RMB 15,530-15,630/mt, with spot discounts between RMB 130-90/mt against SHFE 1408 zinc contract prices.