SHANGHAI, Mar. 29 (SMM) – SMM survey of 30 industry insiders finds that about 27% are bullish toward zinc price trends this week, expecting LME zinc to rise to USD 1,880/mt, and SHFE 1605 zinc to climb to RMB 14,500/mt. China’s manufacturing PMI in March slated for release this week is promising, bolstering commodities. Rebar looks set to rise further. TCs of imported zinc concentrate have been sliding for 6 months in a row to USD 120/dmt at present. Some smelters reported low availability of imported goods. In this context, TCs of domestic zinc concentrate are expected to fall. TCs of domestic zinc concentrate are RMB 5,150-5,350/mt in April, according to SMM quotes.

See SMM Price Forecast Please Click:LME Zinc to Hover at Lows Next Week

About 50% are neutral, expecting LME zinc to fluctuate between USD 1,770-1,830/mt and SHFE 1605 zinc to fluctuate between RMB 14,000-14,400/mt. Trading volumes and positions on both LME and SHFE decreased recently, pointing to market reticence. Market uncertainties toward a likely UK exit from the EU, oil output freeze issue and Fed’s interest rate hike remain.

Some 23% are bearish, seeing LME zinc fall to below USD 1,730-1,760/mt and SHFE 1605 zinc drop to RMB 13,800/mt. ADP’s employment and non-farm data scheduled for release this week are optimistic, growing likelihood of rate hike by the Fed. The US dollar index strengthened recently, weighing on commodity. Increasing likelihood of UK’s exit from the EU will weigh down the pound and euro and depress market sentiment. Despite improving consumption, total inventories in the three regions of China stayed around 400,000 mt. When combined with month-end cash tightness, smelters will sell proactively to generate cash, dampening spot zinc.