SHANGHAI, Aug. 22 (SMM) – Major economic data from China, Europe and the US were mixed overnight, leaving LME zinc prices experiencing corrections. HSBC’s August PMI for China fell far short of market expectations. PMIs from euro zone countries remained sluggish.
LME zinc prices opened at USD 2,356/mt overnight, and dropped to an intraday low of USD 2,341.25/mt. due to upbeat economic data from the US, LME zinc prices clawed back some losses and touched as high as USD 2,370.5/mt. FOMC’s meeting minutes show the Fed will likely hike interest rates soon, weighing down base metals prices. LME zinc prices inched down and closed at USD 2,356.5/mt, down USD 1.5/mt or 0.06%.
SHFE 1410 zinc contract prices opened at RMB 16,850/mt Thursday evening, then climbed with LME zinc prices, touching as high as RMB 16,905/mt, but falling slightly at the end of trading, and closing at RMB 16,835/mt, up RMB 20/mt or 0.12%. Trading volumes decreased by 13,788 to 249,012 lots, and total positions grew by 6,264 to 229,652 lots.
The annual meeting of global central banks in Jackson Hole and Janet Yellen’s statement will be the focus of markets. LME zinc prices will move between USD 2,340-2,370/mt today, and SHFE 1410 zinc contract prices will move between RMB 16,780-16,900/mt, with spot premiums between RMB 40-80/mt against SHFE 1410 zinc contract prices.