SHANGHAI, May 6 (SMM) – EU raised its forecast for euro zone growth in 2015, boosting the euro whilst weighing down the US dollar index, which in turn bolstered base metals prices. When combined with unrest in Libya and price hike for crude oil sold to Europe and the US by Saudi Arabia’s petroleum company pushed COMEX crude oil prices to break through USD 60/bbl. LME zinc prices opened at USD 2,344/mt, then surged to touch USD 2,403/mt, and closed at USD 2,397/mt, up USD 49/mt or 2.09%.
SHFE 1507 zinc contract prices opened at RMB 17,195/mt Tuesday evening, then touched RMB 17,400/mt, and closed at RMB 17,405/mt, up RMB 295/mt or 1.72%.
ISM’s April non-manufacturing index in the US was 57.8, better than market expectations and March’s level, suggesting US non-manufacturing is expanding for the 63rd straight month. US March trade deficit reached USD 51.4 billion, its highest since October 2008. This weighed on the US dollar index and boosted base metals prices.
Annualized euro zone March PPI dropped 2.3%, in line with market expectations, with the decline narrower from February’s. The EU raised its forecast for euro zone countries from 1.3% to 1.5%, whilst leaving its forecast for 2016 unchanged at 1.9%.
COMEX crude oil prices stood at USD 60/bbl.
The US dollar index decreased 0.31%. The EUR:USD rose 0.32%. European and US stocks markets mostly fell, and the Shanghai Composite Index slumped 4%. LME base metals prices rose across the board.
LME zinc prices are expected to move between USD 2,370-2,410/mt today. SHFE 1507 zinc contract prices will fluctuate between RMB 17,320-17,420/mt, with spot discounts of RMB 170-130/mt against SHFE 1507 zinc contract prices.
