SHANGHAI, Jun. 30 (SMM) – Last week, economic news from Europe was sluggish. Michigan's CCI for June was 82.5, topping market expectations, and mainly boosted by present situation index, but expectations index hit a three-month low, so the market received little boost. When combined with political turmoil, base metals prices were weighed down. LME zinc prices opened at USD 2,191/mt, then fluctuated between USD 2,180-2,190/mt, and closing at USD 2,186.75/mt, down USD 6.25/mt or 0.28%. Trading volumes decreased by 2,954 lots, and total positions increased 1,438 lots to 312,000 lots. LME zinc inventories were up 1,300 mt to 669,000 mt.
SHFE 1409 zinc contract prices opened at RMB 15,785/mt last Friday evening, then rose to RMB 15,815/mt before falling to RMB 15,760-15,780/mt, and closing at RMB 15,760/mt, down RMB 30/mt or 0.19%. Trading volumes decreased by 40,000 lots, and total positions increased by 1,300 lots to 153,114 lots.
Risk aversion will grow due to month-end factor and political chaos. Euro zone will announce its June CCI. LME zinc prices will move between USD 2,175-2,195/mt today, and SHFE 1409 zinc contract prices will move between RMB 15,700-15,800/mt, with spot discounts between RMB 150-120/mt against SHFE 1409 zinc contract prices.