SHANGHAI, Aug. 11 (SMM) – A Fed official said they may not raise interest rate in September, weighing on the US dollar. When combined with stimulus measures from China, base metals prices extended gains due to short covering. China’s A-share market surged on Monday, posting the biggest one-day gain over the past month. Meanwhile, China’s home price index in Q2 increased with trading volumes also growing, boosting market sentiment.
LME zinc prices opened at USD 1,857/mt, and rose to a two-day high of USD 1,900/mt, and closed at USD 1,895/mt, up USD 37.5/mt or 2.02%. Trading volumes decreased 2,901 to 9,611 lots, and total positions declined 3,664 to 308,000. LME zinc inventories fell 1,450 to 426,800 mt.
SHFE 1510 zinc contract prices opened at RMB 14,540/mt Monday evening, then climbed to RMB 14,740/mt, and closed at RMB 14,655/mt. Trading volumes of SHFE 1510 zinc contracts increased 8,418 to 97,078 lots, and total positions fell 1,306 to 169,366. Total trading volumes were over 130,000 lots, and total positions were down 926 to 347,036.
LME zinc prices should move between USD 1,880-1,910/mt today, and SHEF 1510 zinc contract prices will hover between RMB 14,600-14,700/mt, with spot premiums of RMB 330-380/mt.