SHANGHAI, Jul. 13 (SMM) – Investors were cautious awaiting result of negotiation on Greek debt issue. LME zinc prices opened at USD 2,013/mt Thursday, then fluctuated between USD 1,995-2,025/mt. Trading volumes increased 17,849 to 101,000 lots, and total positions fell 660 to over 303,000. LME zinc inventories fell 875 to 459,300 mt.
SHFE 1509 zinc contract prices opened at RMB 15,295/mt last Friday evening, then hovered between RMB 15,220-15,320/mt.
China’s trade data slated for release today are not promising. The negotiation on Greek debt issue produced no substantive result, and eurozone leaders said a Grexit is likely should the country fail to come up with austerity plans within 24 hours. This will fuel risk aversion and weigh down base metals. LME zinc prices should move between USD 1,980-2,010/mt today, and SHFE 1509 zinc contract prices will fluctuate between RMB 15,210-15,310/mt, with spot premiums of RMB 10-50/mt against SHFE 1509 zinc contract prices.