SHANGHAI, May 8 (SMM) – Zinc prices in Shanghai Futures Exchange are expected to fall back further due to the lack of fundamentals support, Shanghai Metals Market’s interview shows.
“A downward room is still available for SHFE zinc as demand gives little support, and investors may enter after price drops around to 17,000 yuan,” an analyst from Ruida Futures told SMM in an interview.
On May 7, SMM prices of 0# zinc were 17,010-17,110 yuan per tonne, down 150 yuan per tonne on average.
Domestic zinc smelters turned active in sales, and this, coupled with outflow of hedged goods, increased market supply. Downstream producers, on the other said, entered the market, but only purchased on an as-needed basis, SMM survey finds.