SHANGHAI, Jun. 19 (SMM) – LME zinc prices opened at USD 2,124/mt overnight, and touched USD 2,148/mt, a record high in 16 months, and closing at USD 2,132/mt, up USD 4.25/mt or 0.2%. Trading volumes increased by 1,812 lots to 9,569 lots, and total positions decreased to 30,000 lots. The US Federal Reserve Chairwoman Janet Yellen expressed they will maintain interest rates low in the near future and are optimistic toward US economy, boosting market confidence and weighing down the US dollar index. Base metals prices thus found support.
SHFE 1408 zinc contract prices opened at RMB 15,540/mt on Wednesday evening, then touched as high as RMB 15,580/mt boosted by LME zinc prices, and closing at RMB 15,545/mt, up RMB 30/mt or 0.19%. Trading volumes decreased by 10,000 lots to 39,000 lots, and total positions increased by 1,912 lots to 106,000 lots.
The market will continue to absorb positive effects from Premier Li’s statement and the Fed’s interest rate decision, with the US dollar index moving at low levels. The number of US initial jobless claims last week and Philadelphia Fed’s June manufacturing index will be released today. LME zinc prices are expected to move between USD 2,130-2,150/mt today, and SHFE 1408 zinc contract prices will move between RMB 15,500-15,600/mt, with spot discounts between RMB 80-110/mt against SHFE 1408 zinc contract prices.