SHANGHAI, Jul. 2 (SMM) – China’s official PMI in June leveled with market expectations. When combined with escalating turmoil in Ukraine, risk aversion increased, causing a large number of longs to leave the market. LME zinc prices fell after touching USD 2,222/mt, and dipped to USD 2,184/mt, and closing at USD 2,184.25/mt, down USD 32.5/mt or 1.47%.
SHFE 1409 zinc contract prices opened at RMB 15,940/mt on Tuesday evening, and inched down to RMB 15,900-15,920/mt as a large number of shorts entered the market, and closing at RMB 15,920/mt, down RMB 85/mt or 0.53%. Trading volumes decreased by over 50,000 lots, to 72,900 lots, and total positions increased by 4,114 lots to 186,000 lots.
US ADP employment data in June and May factory orders will be released today. LME zinc prices will rise to USD 2,170-2,200/mt today, and SHFE 1409 zinc contract prices will move between RMB 15,850-15,950/mt, with spot discounts between RMB 200-150/mt against SHFE 1409 zinc contract prices.