SHANGHAI, Jun. 19 (SMM) – LME zinc prices are likely to dive to $ 2,000 per tonne in this coming week, Shanghai Metals Market predicts.
“The downward risk remains in the zinc market, and a technical rally from continuous losses will be possible during its downward track,” SMM zinc group says, expecting LME zinc to trade between $2,035-2,090 per tonne.
In China’s domestic market, SHFE zinc will likely drop to 15,500 yuan to range 15,500-15,900 yuan per tonne amid the bearish sentiment, SMM says.
“Long bets may enter after a string of price losses, so it should not be too pessimistic towards SHFE zinc, when coupled with growing expectations towards fresh stimulus measures in China, such as reserve rate cut,” SMM explains.
In China’s spot zinc market, mid-year cash tightness will constrain spot trading, and this will leave spot prices 0-50 yuan per tonne above SHFE 1508 zinc contracts, SMM adds.
Key indicators for prices in this coming week include the US housing, sales, and GDP data, China’s HSBC PMI, and Europe’s PMI and M3, as well as Greek debt issues.
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