SHANGHAI, Aug. 7 (SMM) - LME zinc prices are expected to move sideways in an $ 1,840-1,900 per tonne range next week, SMM zinc analyst predicts.
Soft demand in China and market pessimism will weigh on zinc price, SMM says. Macquarie and BNP Paribas lowered their forecast for zinc prices, also distressing market sentiment. But investors should refrain from overt pessimism due to market reticence toward the US dollar, SMM adds.
SHFE zinc contracts for October delivery should trade between 14,300-14,800 yuan per tonne, testing the lows in 2012 and 2013.
Spot price in China will trade 350-450 above October delivery SHFE zinc contracts. Supply will remain tight as smelters continue to hold back goods or cut output. Downstream buyers, however, will remain on the sidelines. Cargo holders will increase supply with a large inflow of imported zinc this week’s end.
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