SHANGHAI, May 18 (SMM) – University of Michigan’s May CCI was the lowest since October 2014, and US industrial output slid for the fifth straight month. LME zinc prices opened at USD 2,305/mt, then slumped to USD 2,266/mt during European and US trading hours, and closed at USD 2,291.5/mt. Trading volumes increased 2,088 to 10,123 lots, and total positions fell 519 to 340,000. LME zinc inventories fell 3,675 to 438,475 mt.
SHFE 1507 zinc contract prices opened at RMB 16,860/mt last Friday evening, then dropped to RMB 16,800/mt, and closed at RMB 16,785/mt, down RMB 115/mt or 0.68%.
US April industrial output slid 0.3% MoM, and University of Michigan’s May CCI in May was 88.6, falling far short of market expectations and hitting a new low since October 2014, pushing down the US dollar index and supporting base metals prices. But market concerns over a downshift in global economy weighed down base metals prices.
China’s State Council released the Suggestion Regarding Pushing Cooperation of International Capacity & Equipment Manufacturing last Saturday, meaning China is pushing international cooperation to alleviate domestic overcapacity, which is positive for the base metals industry.
The US dollar index fell 0.11%；The EUR:USD increased 0.32%. European and US stocks were mixed. LME base metals prices followed their own trends.
LME zinc prices are expected to move between USD 2,270-2,300/mt today. SHFE 1507 zinc contract prices will fluctuate between RMB 16,700-16,800/mt, with spot discounts of RMB 120-90/mt against SHFE 1507 zinc contract prices.