SHANGHAI, Aug. 3 (SMM) – Crude oil prices fell further as the number of oil rigs increased again. When combined with a rising US dollar index, base metals prices were weighed down.

LME zinc prices opened at USD 1,954/mt, then hovered around USD 1,950/mt. Due to the entry of shorts, LME zinc prices fell below the 5-day moving average, and closed at USD 1,917.5/mt, down USD 31.5/mt or 1.62%. Trading volumes increased 2,692 to 10,625 lots, and total positions grew 983 to 303,713. LME zinc inventories fell 2,000 to 434,800 mt.

SHFE 1510 zinc contract prices opened at RMB 14,815/mt last Friday evening, then rose to RMB 14,970/mt, and dropped back due to selling pressure and closed at RMB 14,730/mt, down RMB 150/mt or 1.01%.  Trading volumes increased 27804 to 75,236 lots, and total positions grew 7,862 to 136,028.

China’s official manufacturing PMI in July fell short of market expectations, and this depressed the market. LME zinc prices should move between USD 1,900-1,930/mt today, and SHEF 1510 zinc contract prices will hover between RMB 14,650-14,750/mt, with spot premiums of RMB 200-260/mt.