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SMM Zinc Market Morning Review (2015-4-15)
Apr 15,2015 10:00CST
price review forecast
LME zinc prices fell on depressed market sentiment yesterday.

SHANGHAI, Apr. 15 (SMM) – LME zinc prices fell on depressed market sentiment yesterday. Despite fast growth of credit in March, informal financing fell short of market expectations. Besides, railway freight volume dropped to 2010’s level in Q1, meaning sluggish domestic demand, distressing market sentiment. Major economic indicators from the US were also downbeat. LME zinc prices fell to USD 2,200/mt, and dipped to as low as USD 2,173.5/mt, and closed at USD 2,195.5/mt, down USD 5.5/mt or 0.25%. Trading volumes were down 2,631 to 10,276 lots, and total positions decreased 863 to 304,500. LME zinc inventories fell 2,600 to 503,750 mt.

SHFE 1506 zinc contract prices opened higher at RMB 16,350/mt Tuesday evening, then fluctuated around the 5-day moving average and closed the day at RMB 16,340/mt, down RMB 25/mt or 0.15%. Trading volumes were down 10,964 to 41,228 lots, and total positions decreased 994 to 117,182.

LME copper prices fell sharply yesterday while LME aluminum and nickel prices rose. The NBS will announce Q1 growth, investment, consumption and household income figures today.

US March retail sales were up 0.9% MoM, compared to a 1.0% growth expected. US March PPI decreased 0.8% YoY, its largest decline since 2009. This allowed the US dollar index to inch down, which arrested precious metals price drop.

Iran Petroleum Minister said OPEC should cut its daily crude oil output target by at least 5% as falling crude oil prices have harmed the needy members. This will give a lift to crude oil prices in the near term and bolster metals prices.

China’s Q1 growth, March fixed asset investment and consumer goods retail sales will be released today. LME zinc prices are expected to move between USD 2,175-2,205/mt today. SHFE 1506 zinc contract prices will fluctuate between RMB 16,270-16,370/mt, with spot discounts of RMB 110-70/mt against SHFE 1506 zinc contract prices.


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