SHANGHAI, Aug. 4 (SMM) – US ADP's non-farm employment data fell short of market expectations, and unemployment rate rose to 6.2%, weighing down US stocks and distressed market sentiment. But the weak US job market triggered anticipation that the Fed will delay interest rate hike, pulling down the US dollar index and giving support to base metals. LME zinc prices opened at USD 2,351.5/mt, and then continued to fall but found support from the 20-day moving average, and closing at USD 2,343.5/mt, down USD 16.5/mt or 0.69%. LME zinc inventories fell by 1,107, to 11,441 lots, and total positions increased 5,525 to 334,852 lots.
SHFE 1410 zinc contract prices opened at RMB 16,785/mt last Friday, touching RMB 16,860/mt but then dipping to RMB 16,715/mt before hovering around RMB 16,750/mt, and closing at RMB 16,735/mt, down RMB 65/mt or 0.39%. Trading volumes decreased by 115,000 to 229,900 lots, and total positions increased by 946 to 281,300 lots.
The market will continued to absorb the sluggish economic data from China and the US, when combined with geopolitical turmoil, LME zinc prices will move between USD 2,330-2,360/mt today, and SHFE 1410 zinc contract prices will move between RMB 16,700-16,850/mt, with spot prices ranging from RMB 20/mt below to RMB 10/mt above SHFE 1410 zinc contract prices.
