SHANGHAI, Dec. 18 (SMM) – The market will continue to absorb US interest rate hike news, which will send US dollar index up and weigh down base metals. LME zinc prices are expected to move between 1,470-1,500/mt today. SHFE 1602 zinc contract prices hovered around RMB 12,500/mt overnight, and will fluctuate between 12,350-12,550/mt today.
See forecast for other base metals, please click: Base Metal Prices to Weaken, with Eyes on China, SMM Says
In China’s spot markets, zinc smelters will be reluctant to sell on falling zinc prices. But hedge traders will release goods. When combined with inflows of imported zinc, supply will be sufficient. Spot zinc should trade RMB 0-80/mt below SHFE 1602 zinc contract prices.