SHANGHAI, Aug. 13 (SMM) – Major economic indicators released yesterday were mixed. The PBOC further lowered the central parity of RMB:USD, fueling concerns that China’s demand will weaken.
LME zinc prices opened at USD 1,806/mt, then fell as much as 3%, dipping to a four-year low of USD 1730/mt at one point. Fed official said RMB depreciation will likely affect their plan for interest rate hike, pushing down the US dollar to a five-week low of 96. This allowed LME zinc prices to close at USD 1,836/mt, up USD 33/mt or 1.83%. Trading volumes decreased 364 to 19,789 lots, and total positions grew 4,057 to 311,752. LME zinc inventories grew 4,550 to 460,325 mt.
SHFE 1510 zinc contract prices opened at RMB 14,900/mt Wednesday evening, then climbed to RMB 15,070/mt, and closed at RMB 15,020/mt. Total trading volumes were over 120,000 lots, and total positions were down 7,222 to 315,720.
LME zinc prices should rise to USD 1,820-1,850/mt today, and SHFE 1510 zinc contract prices will hover between RMB 14,900-15,100/mt, with spot premiums of RMB 250-300/mt.