SHANGHAI, Jun. 26 (SMM) - LME zinc prices will fall to test $ 2,000 per tonne next week due to the lack of upward momentum, SMM zinc analyst says, expecting prices to range between $ 2,000-2,060 per tonne.
"The lack of investor confidence and resistance from moving averages will hold LME zinc prices in check. But narrowing contango on LME zinc coupled with sliding zinc concentrate TCs in some regions of China will give some support”, SMM zinc analyst foresees.
In China, SHFE zinc contract for September delivery will trade between 15,500-15,800 yuan per tonne.
Spot zinc prices will trade 50 yuan per tonne below or 10 yuan per tonne above SHFE 1509 zinc contract. The market has been subject to cash tightness, when combined with off-season, spot trading will unlikely see a turnaround, SMM says.
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