SHANGHAI, Aug. 5 (SMM) – Market sentiment improved on rebounding A-share market in China, helping base metals prices rebound.
LME zinc prices opened at USD 1,902.5/mt, and rose to touch USD 1,935/mt on a weakening US dollar, but lost some early gains and closed at USD 1,892/mt, up USD 16/mt or 0.84%. Trading volumes decreased 1,203 to 10,650 lots, and total positions grew 1,043 to 300,000. LME zinc inventories fell 2,000 to 430,800 mt.
SHFE 1510 zinc contract prices opened at RMB 14,810/mt Tuesday evening, then reached RMB 14,870/mt, but fell back and closed at RMB 14,745/mt. Trading volumes on SHFE zinc were over 60,000, and total positions increased 1,318 to 316,516.
ADP’s July employment data for the US and June trade data slated for release today are promising. Fed commission expressed its support for interest rate hike, bolstering the US dollar, which weighed on base metals. LME zinc prices should move between USD 1,900-1,930/mt today, and SHEF 1510 zinc contract prices will hover between RMB 14,650-14,800/mt, with spot premiums of RMB 260-310/mt.