SHANGHAI, Jun. 26 (SMM) – LME zinc prices opened at USD 2,048/mt, then fluctuated between USD 2,035-2,045/mt, and closed at USD 2,040/mt, down USD 5/mt or 0.24%. Trading volumes decreased 1,972 to 8,511 lots, and total positions grew 2,699 to 291,383. LME zinc inventories grew 2,100 to 460,000 mt.
SHFE 1509 zinc contract prices opened at RMB 15,625/mt, then hovered between RMB 15,600-15,670/mt. Finally, SHFE 1509 zinc contract prices closed at RMB 15,660/mt, down RMB 30/mt or 0.19%. Trading volumes decreased 12,238 to 27,544 lots, and total positions grew 3,016 to 114,286.
Friday will see US final University of Michigan’s CCI for June and China’s profit number of large industrials in May will be out this weekend. Greece debt crisis issue continues. Thus, investors may remain cautious today.
Greece failed to come up with a new agreement with its creditors again at eurozone meeting yesterday, driving markets worries up. But IMF expressed that Greece will pay USD 1.7 billion due next Tuesday.
Economic indicators were mixed. US May’s PCE rose 0.9% MoM, higher than 0.7% expected and hitting a 6-year high. US initial jobless claims rose 3,000 MoM in May, 1,000 lower than expected but still in a low level. Flash data of June’s service PMI was 54.8, falling short of the 56.5 expected and a new low since January 2015.
The People's Bank of China conducted RMB 35 billion of reverse-repurchase operations Thursday for seven days, cutting bidding rate down to 2.7% from previous 3.35%. News came that China is promising to own 26% voting power in Asian Infrastructure Investment Bank but China’s Financial Ministry has not published any relative data.
US dollar index edged down 0.07% to 95.18 and crude oil price fell 0.95% to 59.7. US stocks all dropped while European stocks diverged. LME base metals ended down except aluminum.
LME zinc prices are expected to fluctuate between USD 2,030-2,060/mt today. SHFE 1509 zinc contract prices will move between RMB 15,620-15,720/mt, with spot prices ranging from RMB 20/mt below to RMB 10/mt above SHFE 1509 zinc contract prices.