SMM Zinc Market Morning Review (2015-4-20)

Published: Apr 20, 2015 09:59

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Base metals prices rolled back early gains last Friday.

SHANGHAI, Apr. 20 (SMM) – Base metals prices rolled back early gains last Friday. LME zinc prices opened at USD 2,240/mt, then rose to USD 2,245/mt. During European and US trading hours, LME zinc prices dropped precipitously due to escalating Greek crisis and closed at USD 2,217/mt, down USD 13.5/mt or 0.61%. Trading volumes were down 1,313 to 8,430 lots, and total positions decreased 185 to 299,038. LME zinc inventories fell to 495,550 mt.

SHFE 1506 zinc contract prices opened at RMB 16,590/mt, then fluctuated between RMB 16,520-16,630/mt, and closed the day at RMB 16,585/mt, down RMB 50/mt or 0.3%.

The PBOC lowered deposit reserve ratio for financial institutions by 1 percentage point, effective April 20. This is expected to inject some RMB 1.2-1.5 trillion in liquidity and inspired the commodity market.

US major economic indicators were mixed. US March core CPI rose to 1.8%, higher than market expectations. University of Michigan’s April CC jumped to a high of 95.9, boosting the US dollar index. But due to ongoing Greek crisis and concerns over earnings reports from US companies, the US dollar index and US stocks both fell.

Risk aversion increased on escalating Greece tensions.

Canada’s March CPI and retail sales topped market expectations and February’s data. UK job data were in line with market expectations as March unemployment fell to 2.3%.

The US dollar index declined 0.22%; the EUR:USD climbed 0.42%; COMEX crude oil prices slumped 1.71%. European and US stocks mostly decreased. LME base metals prices were mixed.

LME zinc prices are expected to move between USD 2,225-2,255/mt today. SHFE 1506 zinc contract prices will fluctuate between RMB 16,680-16,800/mt, with spot discounts of RMB 180-120/mt against SHFE 1506 zinc contract prices.

zinc prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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