SHANGHAI, Jun. 13 (SMM) – Turmoil in Iraq grew, weighing down market sentiment. When combined with worse-than-expected US retail sales in May, risk aversion increased, pushing down US stocks and pulling up gold prices. Base metals prices were weighed down. LME zinc prices opened at USD 2,115.25/mt overnight, then fell below USD 2,100/mt, and closing at USD 2,076/mt, down USD 41.25/mt or 1.95%. Trading volumes increased by 634 lots to 11,032 lots, and total positions increased 5,444 lots, to 321,076 lots. LME zinc inventories fell by 7,375 mt to 687,275 mt.
SHFE 1408 zinc contract prices opened at RMB 15,525/mt on Thursday evening, then fell below the 5-day moving average, and closing at RMB 15,325/mt, down RMB 255/mt or 1.64%. Trading volumes increased by 36,792 lots to 124,686 lots, and total positions decreased by 12,590 lots to 122,818 lots.
China's probe into financing fraud and chaos in Iraq will increase risk aversion. LME zinc prices are expected to move between USD 2,060-2,090/mt today, and SHFE 1408 zinc contract prices will move between RMB 15,270-15,370/mt, with spot prices ranging from RMB 20/mt below to RMB 20/mt above SHFE 1408 zinc contract prices.