SHANGHAI, Jul. 18 (SMM) – China MMG lowered zinc output target for 2014, saying its Century mine will be closed after running out of resources in 2015. When combined with continuously falling LME zinc inventories, LME zinc prices gained ground. LME zinc prices opened at USD 2,294/mt, and edged up to USD 2,300/mt, and closing at USD 2,307.75/mt, up USD 19.5/mt or 0.85%. Trading volumes increased by 109 lots, to 9,595 lots, and total positions increased by 7,564 lots to 322,553 lots. LME zinc inventories fell by 350 mt to 657,375 mt.
SHFE 1409 zinc contract prices opened at RMB 16,685/mt on Thursday evening, then touched RMB 16,715/mt, but later fluctuated between RMB 16,650-16,700/mt and closing at RMB 16,685/mt, up RMB 75/mt or 0.45%.
LME zinc prices will move between USD 2,300-2,330/mt today, and SHFE 1409 zinc contract prices will move between RMB 16,610-16,800/mt, with spot discounts between RMB 50-100/mt against SHFE 1409 zinc contract prices.