SHANGHAI, Jun. 9 (SMM) – LME zinc prices opened at USD 2,141.5/mt and dipped to a low of USD 2,126.5/mt during European and US trading session, but rallied later to USD 2,140/mt, and closing at USD 2,142/mt, up USD 9/mt or 0.12%. Trading volumes decreased 19,368 to 107,000 lots, and total positions declined 3,108 to over 307,000. LME zinc inventories fell 1,975 to 442,500 mt.
SHFE 1508 zinc contract prices opened at RMB 16,285/mt Monday evening, then surged to RMB 16,375/mt, but fell back to RMB 16,300/mt later on and closed at RMB 16,305/mt, up RMB 30/mt or 0.18%.
G7 leaders hope that Greece will stay in the eurozone and pointed out global economic outlook improves. Falling energy prices will lend support to G7 economies, and will push reform in the face of high unemployment rate. US also expressed the US dollar index is too high, which has affected their real economy, pushing up the euro and weighing down the US dollar index. This boosted base metals prices. But market expectations grew that the Fed will raise interest rate soon as Fed's Labor Market Conditions Index rose to 1.3 in May, much higher than the -1.9 in April.
Falling petroleum imports by China and decisions that OPEC member countries will not cut output weighed down crude oil prices to fall 1.7% to close at USD 58.14/bbl. New York gold prices rose 0.5% to close at USD 1173.60/oz. LME base metals prices all rose slightly.
The NBS will release China’s My CPI and PPI. Many institutions expect CPI to grow 1.3%-1.4%, suggesting low inflation rate in China. This should precipitate an interest rate cut in June at the earliest. PPI in May is expected to drop 4.3%-4.6%.
LME zinc prices are expected to move between USD 2,125-2,155/mt today. SHFE 1508 zinc contract prices will fluctuate between RMB 16,270-16,370/mt, with spot discounts of RMB 40-10/mt against SHFE 1508 zinc contract prices.
