SHANGHAI, Jun. 15 (SMM) – LME zinc prices opened at USD 2,126/mt and fell to test USD 2,100/mt, dipping to a two-month low of USD 2,095/mt, and rallied some and closed at USD 2,129.5/mt, up USD 2.5/mt or 0.12%. Trading volumes decreased 1,565 to 9,974 lots, and total positions declined 3,858 to over 310,812. LME zinc inventories grew 9,625 to over 458,875 mt.
SHFE 1508 zinc contract prices opened at RMB 16,165/mt last Friday evening, then fluctuated between RMB 16,150-16,250/mt, and closed at RMB 16,205/mt, up RMB 10/mt or 0.06%. Trading volumes decreased 40,162 to 29,156 lots, and total positions increased 2,122 to 125,170.
Ongoing Greek crisis continued to overshadow the market, allowing the euro to fluctuate significantly.
The rating agency Standard & Poor’s lowered its outlook for UK to negative whilst maintaining the AAA credit rating unchanged.
US Labor Department announced May PPI was up 0.5% MoM, topping market expectations and posting the most significant MoM growth over the past 2.5 years. University of Michigan’s CCI was also better than expected. This fueled market expectations that the Fed will raise interest rate in September.
Chinese Premier Li Keqiang required the government enhance input in environmental protection and infrastructure, which will be negative for the polluting nonferrous metals industry.
The US dollar index was down 0.12%. The EUR:USD rose 0.11%. European and US stocks markets mostly dropped. LME base metals prices were mixed.
LME zinc prices are expected to fluctuate between USD 2,110-2,140/mt today. SHFE 1508 zinc contract prices will hover between RMB 16,130-16,250/mt, with spot prices ranging from RMB 10/mt below to RMB 10/mt above SHFE 1508 zinc contract prices.