SHANGHAI, Aug. 12 (SMM) – The surging trend stopped abruptly in the zinc market. LME zinc tumbled for four trading days in a row, and SHFE zinc followed suit. During the period of Aug. 5-8, LME zinc slid by 4.32%, while SHFE 1410 zinc shed by 2.38%. What factors caused the decline in the zinc market? Will zinc prices continue falling or regain some rising stream?
Most analysts from major domestic futures companies, interviewed by Shanghai Metals Market, noted that profit-taking is blamed for recent losses in the zinc market, but the rising trend remains intact.
“Recent corrections in the zinc market will not stop its upward trend, and key support level for LME and SHFE zinc will be $2,250 per tonne and 16,500 yuan per tonne, respectively”, said one analyst from CITIC Futures told SMM in a recent interview.
Meanwhile, analysts generally understood that growing inventories both in LME and SHFE markets and no improvement in consumption will put a downward pressure on short-term zinc price, but any declines should be small.
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