SHANGHAI, Aug. 20 (SMM) – LME zinc prices opened at USD 2,285.25/mt overnight, and moved between USD 2,283-2,293/mt during Asian trading hours. Boosted by better-than-expected US housing data in July, US stocks gained ground, pushing up LME zinc prices to USD 2317.75/mt. But a rising US dollar index weighed down LME zinc prices, closing at USD 2,310.75/mt, up USD 23/mt or 1.01%. Trading volumes increased by 1,977 to 8,465 lots, and total positions were down by 3,289 to 314,523 lots. LME zinc inventories fell 875 mt to 736,525 mt.
SHFE 1410 zinc contract prices opened at RMB 16,595/mt Tuesday evening, then touching a high of RMB 16,650/mt, but falling back down due to mounting short momentum, and closing at RMB 16,590/mt, up RMB 70/mt or 0.42%. Trading volumes decreased by 28,958 to 216,318 lots, and total positions grew by 7,096 to 237,408 lots.
The Bank of England's and Fed's meeting minutes will be the focus of markets today. Despite positive effects from US economic data released yesterday, the strengthening US dollar index will weigh on base metals prices. LME zinc prices will move between USD 2,285-2,315/mt today, and SHFE 1410 zinc contract prices will move between RMB 16,520-16,620/mt, with spot premiums between RMB 10-30/mt against SHFE 1410 zinc contract prices.
