SHANGHAI, Jul. 24 (SMM) - LME zinc prices should fall below $ 2,000 level next week, moving between $ 1,950-2,010 per tonne, SMM zinc analyst foresees.
"A strong US dollar will weigh down base metals”, SMM zinc analyst says. Improvement in US property market in the first half of this year bodes well for the country’s major economic indicators slated for release next week. This will grow market expectations of a nearing interest rate hike by the Fed, boosting the US dollar. Besides, a weak euro will also bolster the US dollar.
Meanwhile, market pessimism has also predominated in the market recently.
SHFE zinc contracts for September delivery will trade between 14,800-15,300 yuan per tonne.
Spot zinc in China will trade 20-80 yuan above September delivery SHFE zinc contracts. Supply will be healthy. Hedge traders will release some goods while there will be also inflows of imported zinc. However, downstream demand will remain soft on the off-season, and traders expecting spot premiums to fall will be unwilling to purchase.
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