SHANGHAI, Jul. 9 (SMM) – LME zinc prices opened at USD 1,960/mt Wednesday, then slumped by daily limit at one point on market pessimism from China’s A-share market, dipping to a new low of USD 1,906/mt since December 2013. Nonetheless, with a release of stimulus measures from China, investor confidence improved, allowing LME zinc prices to regain early losses and close at USD 1,980/mt, up USD 26.5/mt or 1.36%. Trading volumes decreased 2,102 to 17,263 lots, and total positions grew 4,854 to 300,000. LME zinc inventories fell 1,425 to 460,000 mt.
SHFE 1509 zinc contract prices opened at RMB 14,750/mt Wednesday evening, then rallied to fluctuate between RMB 14,900-15,000/mt, and closed at RMB 14,985/mt, up RMB 225/mt or 1.52%. Trading volumes decreased 140,000 to 110,000 lots, and total positions declined over 10,000 to 127,600. LME zinc inventories fell 1,425 to 460,000 mt.
The market should keep a close watch on China’s A-share market today. LME zinc prices should move between USD 1,965-1,995/mt today, and SHFE 1509 zinc contract prices will fluctuate between RMB 14,950-15,050/mt, with spot premiums of RMB 80-130/mt against SHFE 1509 zinc contract prices.