SHANGHAI, Jul. 10 (SMM) - LME zinc prices should consolidate support from $ 2,000 next week, SMM zinc analyst predicts, expecting prices to move between $ 1,980-2,050 per tonne.
Dented market panic and easing risk aversion should help LME zinc price stabilize. China’s stock market showed some rally, and Greek issue also appeared to have made some progress. Besides, growing dip-buying will also support LME zinc price.
In China, SHFE zinc contract for September delivery should find solid support at 15000 yuan, hovering between 15000-15600 yuan per tonne next week.
Spot zinc price will trade 0-50 yuan per tonne higher than SHFE zinc contract for September delivery.
Spot trading will unlikely see any turnaround as both supply and demand will decline. Recently low zinc prices have caused smelters to hold back goods. Some have plans for maintenance in mid-July, also reducing supply. On the other hand, purchases from both traders and downstream buyers will decrease on high spot premiums and off-season.
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