SHANGHAI, Jan. 14 (SMM) – Crude oil prices slumped to a six-year low but clawed back some losses at the end of trading. Market sentiment, however, was depressed. It was reported China’s hedge funds saw copper prices falling, dragging down commodity prices. LME zinc prices tumbled below USD 2,100/mt and hit a seven-month low of USD 2,074.75/mt, and closing at USD 2,074.75/mt, down USD 65.5/mt or 3.06%. Trading volumes were up 7,669 to 15,863 lots, and total positions increased 1,635 to 302,000. LME zinc inventories fell 3,175 to 667,700 mt.

SHFE 1503 zinc contract prices opened lower at RMB 16,080/mt Tuesday evening, then hovered around RMB 16,100/mt, and closing at RMB 16,105/mt, down RMB 220/mt or 1.35%. Trading volumes were up 34,564 to 102,048 lots, and total positions increased 3,932 to 164,262.

LME zinc prices are expected to move between USD 2,050-2,100/mt. SHFE 1503 zinc contract prices will move between RMB 16,000-16,150/mt, with spot premiums between RMB 260-300/mt against SHFE 1503 zinc contract prices.