SHANGHAI, Aug. 4 (SMM) – Base metals prices extended losses as shorts prevailed. Caixin’s final manufacturing PMI for China in July fell short of market expectations and flash figures. Crude oil prices plummeted over 4%.
LME zinc prices opened at USD 1,916/mt, and dipped to USD 1,882.5/mt, a new low since December 2, 2013, and closed at USD 1,902/mt, down USD 15.5/mt or 0.81%. Trading volumes increased 1,228 to 11,853 lots, and total positions grew 445 to 304,000.
SHFE 1510 zinc contract prices opened at RMB 14,580/mt Monday evening, then fluctuated between RMB 14,510-14,680/mt, and closed at RMB 14,600/mt. Trading volumes of SHFE 1510 zinc contracts decreased 27,636 to 75,236 lots, and positions grew 2,774 to 147,838. Trading volumes on SHFE zinc grew to 70,000, and total positions increased 6,034 to 310,668.
US factory orders in June slated for release today are expected to be positive, boosting market sentiment. LME zinc prices should move between USD 1,890-1,920/mt today, and SHEF 1510 zinc contract prices will hover between RMB 14,580-14,680/mt, with spot premiums of RMB 260-300/mt.