SHANGHAI, May 5 (SMM) – The LME market was closed yesterday. SHFE 1507 zinc contract prices opened at RMB 17,210/mt Monday evening, then dipped to RMB 17,115/mt, and fluctuated around RMB 17,115/mt, and closed at RMB 17,170/mt, down RMB 10/mt or 0.06%.
Major economic indicators from China released yesterday were downbeat. HSBC’s April PMI for China was 49.2, a new low since April 2014. Output sub-indice dropped from March’s 51.3 to 50, its lowest since December 2014. New order index also dropped to a record low from April 2014. The manufacturing is facing increasing deflationary pressure.
Euro zone April manufacturing PMI was 52.0, slightly higher than expectations but lower than March’s. Germany’s manufacturing PMI in April was 52.1, higher than the flash data. France’s April manufacturing PMI was 48, falling short of both expectations and March’s level. Output and new order sub-indices in France slid more sharply.
US factory orders in March rose 2.1% MoM, their largest growth over the last eight months, which is higher than the 2% growth expected. This supported the US dollar index.
The US dollar index increased 0.19%. The EUR:USD dropped 0.42%. European and US stocks markets mostly grew. The LME market was closed yesterday due to the May Day bank holiday.
LME zinc prices are expected to move between USD 2,320-2,350/mt today. SHFE 1507 zinc contract prices will fluctuate between RMB 17,100-17,200/mt, with spot discounts of RMB 140-100/mt against SHFE 1507 zinc contract prices.