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SMM Zinc Market Morning Review (2015-6-24)
Jun 24,2015 09:55CST
price review forecast
LME zinc prices opened at USD 2,037.5/mt then fluctuated between USD 2,040-2,050/mt.

SHANGHAI, Jun. 24 (SMM) – LME zinc prices opened at USD 2,037.5/mt then fluctuated between USD 2,040-2,050/mt. During European and US trading session, LME zinc prices dipped to USD 2,024/mt, and rallied to USD 2,050/mt, and closed at USD 2,055.2/mt, up USD 22.2/mt or 19.5%. Trading volumes increased 1,539 to 93,891 lots, and total positions fell 388 to 286,285. LME zinc inventories fell 2,050 to 464,425 mt.

SHFE 1508 zinc contract prices opened at RMB 15,600/mt Tuesday evening, then rose to close at RMB 15,665/mt, up RMB 45/mt or 0.29%. Positions decreased 1,874. Positions of SHFE 1509 zinc contracts grew 1532 to 95,314.

The flash data of HSBC’s China manufacturing PMI for June was 49.6, a three-month-high and better than forecast and May’s data, supporting lead prices. Output index increased from May’s 49.3 to 50, a 2-month-high, and flash data of new order sub-index grew to 50.3, the first growth in four months.

US May’s annualized new home sales was 546,000, hitting a fresh high since February 2008, up 2.2% MoM. But May’s durable goods orders fell 1.8% MoM and April’s FHFA home price index rose 0.3%, short of 0.5% expected. Also, initial value of Markit’s manufacturing PMI was 53.4, a new low since October 2013. Even so, US stocks still rose yesterday due to 50% possibility of the Fed hiking interest rate in September.

Economic indicators from eurozone were positive. Flash data of June’s PMI composite output index increased from May’s 53.6 to 54.1, hitting a 49-month high. Service and manufacturing indexes performed well.

Ongoing Greece debt crisis eased slightly, but investors still stayed cautious.

US dollar jumped 1.14% and crude oil price was up 1.04%. London gold fell for straight three days, down 0.62% to 1178.7. European and US stocks all grew. LME base metals rebounded.

LME zinc prices are expected to rally to USD 2,035-2,065/mt today. SHFE 1508 zinc contract prices will move between RMB 15,600-15,700/mt, with spot premiums of RMB 0-20/mt over SHFE 1508 zinc contract prices.

LME zinc prices

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