SHANGHAI, Aug. 12 (SMM) – The PBOC unexpectedly lowered RMB central parity yesterday, greatly impacting the commodity market. US and European stocks dropped across the board, with crude oil prices down further. This grew investor concerns over China’s economy. LME zinc prices posted the biggest one-day drop of nearly 5%.
LME zinc prices opened at USD 1,895/mt, then fell all the day and dipped to USD 1,800/mt, a new low since May 15, 2013, and closed at USD 1,803/mt, down USD 92/mt or 4.85%. Trading volumes increased 10,542 to 20,153 lots, and total positions declined 634 to over 300,000. LME zinc inventories grew 28,900 to 455,775 mt.
LME zinc prices should move between USD 1,780-1,810/mt today, and SHFE 1510 zinc contract prices will hover between RMB 14,400-14,550/mt, with spot premiums of RMB 390-440/mt.