SHANGHAI, May 21 (SMM) – The possibility that the Fed will hike interest rate in June remains. The US dollar index to rise further. LME zinc inventories unexpectedly grew over 30,000 mt, weighing on zinc prices. LME zinc prices opened at USD 2,232/mt, touching USD 2,243/mt before falling back, and closing at USD 2,204/mt, down USD 31/mt or 1.39%. Trading volumes increased 2,476 to 13,566 lots, and total positions fell 7,869 to over 340,000. LME zinc inventories grew 33,775 to 467,125 mt.
SHFE 1507 zinc contract prices opened at RMB 16,600/mt Wednesday evening, then fluctuated between RMB 16,500-16,520/mt, and closed at RMB 16,510/mt, down RMB 160/mt or 0.96%. Trading volumes decreased 19,350 to 59,178 lots, and total positions fell 1,916 to 87,986.
The Fed did not illustrate when to hike interest rate in its April meeting minutes. This allowed gold prices to rise.
The Bank of England left interest rate unchanged at its May policy meeting. UK stocks strengthened.
Germany’s annualized April PPI slid 1.5%, falling short of market expectations, and April PPI was also worse than expected, pushing down the EUR:USD.
The US dollar index rose for the third straight day, but increases narrowed. Major stocks markets were mixed. LME tin and nickel prices rose, while other base metals prices were down.
LME zinc prices are expected to move between USD 2,180-2,210/mt today. SHFE 1507 zinc contract prices will fluctuate between RMB 16,450-16,550/mt, with spot discounts of RMB 80-60/mt against SHFE 1507 zinc contract prices.