SMM Zinc Market Morning Review (2015-5-25)

Published: May 25, 2015 09:13

Save

US April CPI released last Friday was unexpectedly upbeat, and Fed Chairwomen Janet Yellen expressed they will hike interest rate this year and tighten monetary policies, boosting the US dollar index.

SHANGHAI, May 25 (SMM) – US April CPI released last Friday was unexpectedly upbeat, and Fed Chairwomen Janet Yellen expressed they will hike interest rate this year and tighten monetary policies, boosting the US dollar index to hit a three-week high and weighing down base metals prices. LME zinc prices opened at USD 2,203/mt, then plunged and dipped to USD 2,163/mt, and closed at USD 2,175.5/mt, down USD 30.5/mt or 1.38%. Trading volumes decreased 134 to 12,743 lots, and total positions fell 86 to over 320,000. LME zinc inventories fell 1,975 to 460,000 mt.

The shift was made to SHFE 1508 zinc contracts last week, with prices opening at RMB 16,500/mt last Friday evening, then hovered around RMB 16,530/mt, and closed at RMB 16,545/mt, down RMB 110/mt or 0.66%. Total positions grew 4,950 to 84,316.

US April core CPI was up 0.3%, its most significant growth since January 2013. Janet Yellen’s statement pushed up the US dollar index by 0.81%. Commodity prices dropped across the board.

Bake Hughes reports the number of US oil drilling platforms decreased to 659, its lowest since August 20, 2010. But this failed to boost crude oil prices, with the latter down 1.65% due to oversupply and the rebounding US dollar index.

Growing Greek crisis increased risk aversion.

The US dollar index rose 0.81%. US stocks dropped, and European stocks were mixed. LME base metals prices decreased across the board.

US markets, UK and Hong Kong markets will all be closed today due to holiday. SHFE 1508 zinc contract prices will fluctuate between RMB 16,500-16,600/mt, with spot discounts of RMB 70-50/mt against SHFE 1508 zinc contract prices.

zinc prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

12 hours ago

Fed's Waller: Ready to Cut Rates if Labor Market Weakens, Cautious on Inflation Risks

US Fed Governor Christopher Waller said on Friday that if signs of weakness emerged in the labor market, he would again support an interest rate cut later this year, while remaining alert to the inflationary pressures that the current geopolitical situation may bring.Waller noted that a closure of the Strait of Hormuz signaled greater inflationary pressure, and that higher oil prices could ultimately affect core inflation. He stressed that the current cautious stance did not mean there would be no action for the rest of the year.His remarks sent an important signal to the market—that the window for an interest rate cut had not closed, provided that employment data showed clear weakening.

12 hours ago

IRGC: US Carrier Ford's Deployment and Withdrawal Reflects "Desperate and Humiliating" Reality for US, Israel

According to Xinhua News Agency, the Islamic Republic News Agency reported on the 20th that the Islamic Revolutionary Guard Corps issued a statement saying that, despite extensive attention from Western media, the US Navy aircraft carrier Ford was deployed to the West Asia region but failed to provide support for US forces there and instead withdrew from the battlefield, reflecting the “desperate and humiliating” reality facing the US and Israel.

12 hours ago

US Treasury Secretary Bessent: SPR Release Complexity and Limits Amid Oil Price Stabilization Efforts

US Treasury Secretary Bessent claimed that the Strategic Petroleum Reserve (SPR) could be tapped again to suppress oil prices, but the reality was far more complex than this statement suggested—the reserve level was already close to the statutory minimum, and physical safety constraints left extremely limited room for any further release.Last week, Bessent said that the US had participated in the largest internationally coordinated SPR release operation to date, totaling 400 million barrels, and warned that, if necessary, the US could once again unilaterally release reserves to stabilize oil prices.

12 hours ago