SHANGHAI, Jul. 29 (SMM) – US economic indicators released last night was sluggish. The S&P/Case-Shiller 20-City Home Price Index fell short of market expectations. Conference Board’s July CCI for the US dropped to the lowest since September 2014. Besides, the Fed will announce its interest rate decision Wednesday, leaving investors cautious.
LME zinc prices opened at USD 1,936/mt, then stabilized at USD 1,980/mt, and closed at USD 1,986/mt, up USD 55/mt or 2.85%. Trading volumes decreased 2,270 to 71,705 lots, and total positions grew 55 to 303,678. LME zinc inventories were down 2,075 to 441,275 mt.
SHFE 1509 zinc contract prices opened at RMB 14,900/mt Tuesday evening, then dipped to RMB 14,885/mt but later climbed to RMB 15,000/mt, and closed at RMB 15,100/mt. Trading volumes were over 120,000 lots, and total positions fell 3,034 to 278,768.
Market expectations of an interest rate hike by the Fed decreased, which should weigh on the US dollar. But investors will be reticent due to soft demand in China. LME zinc prices should move between USD 1,970-2,000/mt today, and SHEF 1510 zinc contract prices will rise to RMB 15,000-15,150/mt, with spot premiums of RMB 60-110/mt.