SHANGHAI, Jun. 16 (SMM) – China's industry output in May was positive, boosting market confidence. LME zinc prices opened at USD 2,077/mt overnight, then rose slightly to USD 2,090/mt, touching an intraday high of USD 2,096/mt. But euro zone trade data in April, US May PPI and University of Michigan's June CCI all fell far short of expectations, weighing down the market. LME zinc prices fluctuated between USD 2,075-2,085/mt, and closed at USD 2,086.25/mt, up USD 10.25/mt or 0.49%. Trading volumes decreased by 2,809 lots to 8,223 lots, and total positions increased 2,452 lots, to 323,528 lots. LME zinc inventories fell by 2,650 mt to 684,625 mt.
SHFE 1408 zinc contract prices opened at RMB 15,360/mt last Friday evening, then touched RMB 15,445/mt before falling back to RMB 15,355-15,400/mt, and closing at RMB 15,395/mt, flat with settling prices on the previous trading day. Trading volumes decreased by 70,000 lots, and total positions increased by 2,716 lots to 114,000 lots.
Euro zone May CCI and New York Fed's June manufacturing index will be released today. But the market will remain cautious ahead of the US Federal Reserve's policy meeting result. LME zinc prices are expected to move between USD 2,075-2,100/mt today, and SHFE 1408 zinc contract prices will move between RMB 15,350-15,450/mt, with spot discounts between RMB 50-90/mt against SHFE 1408 zinc contract prices.