SHANGHAI, Apr. 30 (SMM) – LME zinc prices extended gains and edged up USD 6/mt to close at USD 2,300/mt on Wednesday, with the intraday low at USD 2,270/mt.
The US dollar index fell with investor expectation for a rate hike by the Fed in June receding. The cash-to-three-month backwardation surged with reports that Nyrstar will cut zinc concentrate output this year. However, resistance formed at higher prices.
SHFE 1507 zinc contract opened at RMB 16,870/mt for Wednesday’s night session and met resistance at RMB 17,000/mt. That being said, buying activities grew with positions up 12,214.
SHFE 1507 zinc is expected to trade at RMB 16,940-17,040/mt on April 30, and spot zinc may be offered at discounts of RMB 60-120/mt.
