SHANGHAI, Jun. 18 (SMM) – LME zinc prices opened at USD 2,108/mt overnight, and fluctuated in a narrow range during Asian trading hours. During European and US trading hours, Premier Li ensured China's economic growth at 7.5% this year, increasing market confidence toward China's economic growth. But mixed economic data from Europe and the US gave only little boost to LME zinc prices. LME zinc prices climbed to USD 2,125/mt then leveled out, and closing at USD 2,127.75/mt, up USD 20.75/mt or 0.99%. Trading volumes increased by 2,431 lots to 7,757 lots, and total positions decreased 7,357 lots, to 310,173 lots.
SHFE 1408 zinc contract prices opened at RMB 15,475/mt on Tuesday evening, then touched as high as RMB 15,555/mt, and closing at RMB 15,545/mt, up RMB 125/mt or 0.81%. Trading volumes increased by 26,000 lots to 50,000 lots, and total positions increased by 6,902 lots to 107,000 lots.
The market will continue to absorb positive effects from Premier Li's statement, and expectations grew that the US Federal Reserve will raise interest rates soon due to unexpectedly rising inflation rate. FOMC policy meeting remains the focus of markets. LME zinc prices are expected to move between USD 2,110-2,140/mt today, and SHFE 1408 zinc contract prices will move between RMB 15,500-15,600/mt, with spot discounts between RMB 50-90/mt against SHFE 1408 zinc contract prices.