SMM Zinc Market Morning Review (2015-3-13)

SHANGHAI, Mar. 13 (SMM) – LME zinc prices rebounded yesterday due to improvement in major economic indicators released. US retail sales were sluggish, so the Fed will unlikely raise interest rate any time soon. The US dollar index reached 100 then dropped. China’s February financing data topped market expectations and hit a new high over the past six years. M2 growth also rebounded, boosting market sentiment. LME zinc prices opened at USD 2,000/mt, and touched USD 2,026/mt, then rolled back some early gains, and closed at USD 2,012/mt, up USD 11/mt, or 0.55%. Trading volumes were down 3,188 to 7,042 lots, and total positions increased 1,167 to 290,000. LME zinc inventories fell 2,650 to 540,000 mt.

SHFE 1505 zinc contract prices opened at RMB 15,740/mt Thursday evening, then dropped to RMB 15,640-15,670/mt as a large number of longs left the market after profit-taking, and closed the day at RMB 15,665/mt, up RMB 10/mt or 0.06%. Trading volumes decreased 13,236 to 38,680 lots, and total positions decreased 1,026 to 172,752.

US February PPI and University of Michigan’s March CCI slated for release today are expected to improve, which will inspire the market. LME zinc prices are expected to move between USD 2,000-2,030/mt. SHFE 1505 zinc contract prices will fluctuate between RMB 15,630-15,730/mt, with spot premiums of RMB 0-50/mt.