SMM Zinc Market Morning Review (2015-7-17)

SHANGHAI, Jul. 17 (SMM) – US economic data released overnight were upbeat. NAHB Housing Market Index in July hit a 10-year high, boosting the US dollar index and weighing down base metals.

LME zinc prices opened at USD 2,081.5/mt, then surged to USD 2,100/mt, but fell back to USD 2,060/mt, and closed at RMB 2,069/mt, down RMB 11.5/mt or 0.55%. Trading volumes decreased 8,075 to 7,048 lots, and total positions grew 1,847 to 304,686. LME zinc inventories fell 1,000 to 455,350 mt.

SHFE 1509 zinc contract prices opened at RMB 15,695/mt Thursday evening, then hovered around RMB 15,650/mt, and closed at RMB 15,610/mt, down RMB 85/mt or 0.54%. Trading volumes decreased 34,032 to 65,720 lots, and total positions grew 1,956 to 120,342.

US housing starts, construction permits and CPI in June scheduled for release today are expected to be mixed. LME zinc prices should move between USD 2,050-2,080/mt today, and SHFE 1509 zinc contract prices will fluctuate between RMB 15,550-15,650/mt, with spot price ranging from RMB 10/mt below to RMB 30/mt above SHFE 1509 zinc contract prices.