SHANGHAI, May 28 (SMM) – Profit at China’s large industrials in April grew, but was mostly contributed from investment, giving little boost to base metals prices. The US dollar index surged initially then fell during European and US trading session, allowing base metals prices to rise. LME zinc prices opened at USD 2,186/mt, then dropped to USD 2,164/mt but rallied to USD 2,190/mt, testing USD 2,200/mt and closing at USD 2,188.5/mt, up USD 3.5/mt or 0.16%. Trading volumes increased 16,567 to 97,504 lots, and total positions fell 1,474 to over 320,000. LME zinc inventories fell 2,050 to 458,800 mt.
SHFE 1508 zinc contract prices opened at RMB 16,550/mt Wednesday evening, then rose to RMB 16,785/mt, and closed at RMB 16,705/mt, up RMB 100/mt or 0.6%. Trading volumes increased 28,210 to 68,776 lots, and total positions grew 14,564 to 122,522.
Profit at China’s large industrials rose 2.6% YoY in April, or an increase of RMB 12.03 billion, but RMB 11.61 billion was from investment. This suggests major operational income at industrials did not improve. China enhanced support for the property market.
Greek and its creditors are under negotiation of the EUR 7.2 billion bailout fund, causing US stocks, euro and crude oil prices to jump.
The US dollar index fell on rising euro; LME base metals prices were mixed.
Eurozone May economic climate index, the number of US initial jobless claims last week and existing home sales in April slated for release today are mixed. LME zinc prices are expected to move between USD 2,185-2,215/mt today. SHFE 1508 zinc contract prices will fluctuate between RMB 16,680-16,780/mt, with spot discounts of RMB 100-70/mt against SHFE 1507 zinc contract prices.