SHANGHAI, Jun. 26 (SMM) – US Q1 GDP released yesterday unexpectedly fell due mainly to slower consumption in medical care, while US Markit PMI in June hit a record high since October 2009. US stocks plunged before rebounding, boosting market confidence. When combined with a continuously falling US dollar index, base metals prices found some support. LME zinc prices opened at USD 2,173/mt, then fluctuated between USD 2,165-2,185/mt, and closing at USD 2,182.75/mt, up USD 6.5/mt or 0.3%. Trading volumes decreased by 279 lots to 7,796 lots, and total positions increased 4,045 lots to 310,000 lots. LME zinc inventories were down 2,475 mt to 668,775 mt.
SHFE 1409 zinc contract prices opened at RMB 15,660/mt on Wednesday evening, then rose to RMB 15,730/mt, and closing at RMB 15,735/mt, up RMB 70/mt or 0.45%. Trading volumes increased by 27,000 lots, and total positions increased by 6,442 lots to 143,000 lots, a record high since last October.
The number of US initial jobless claims last week will be released today, and a falling US dollar index will give support to base metals prices. LME zinc prices will move between USD 2,175-2,195/mt today, and SHFE 1409 zinc contract prices will move between RMB 15,680-15,780/mt, with spot discounts between RMB 100-130/mt against SHFE 1409 zinc contract prices.