SHANGHAI, Jul. 23 (SMM) – US June CPI was up 2.1% YoY, flat with market expectations, but signaling US economy is recovering. US home price index in May topped market expectations, boosting market sentiment. Falling LME zinc inventories caused market optimism to grow, and attracted speculative capital to inflow to the market.
LME zinc prices opened at USD 2,343.5/mt overnight, and touched a three-year high of USD 2,375/mt, and closing at USD 2,372.5/mt, up USD 28.5/mt or 1.22%.
SHFE 1410 zinc contract prices opened at RMB 17,060/mt Tuesday evening, but fell to RMB 17,030/mt as a large number of longs left the market, and closing at RMB 17,025/mt, down RMB 15/mt or 0.09%.
The minute of Bank of England's policy meeting will be the focus of markets today. With continuously falling LME zinc inventories and positive US economy, LME zinc prices will move between USD 2,355-2,385/mt today, and SHFE 1410 zinc contract prices will move between RMB 16,990-17,140/mt, with spot discounts between RMB 70-100/mt against SHFE 1409 zinc contract prices.