[Zn] Limited Downward Room for SHFE Zinc Prices

SHANGHAI, Sept. 2 (SMM) -- LME zinc prices closed down significantly negatively affected by plunged Dow Jones index last night. Today, SHFE zinc prices opened low and went higher, and received support from RMB 15,000/mt. SHFE zinc three-month contract prices opened at RMB 14,810/mt, and then jumped to RMB 15,000/mt, but then moved downward due to falling SHFE copper prices. Finally, SHFE zinc three-month contract prices rebounded at closing and closed at RMB 14,935/mt, down 0.76%, and open interest increased by 18,506 lots. The US Institute for Supply Management (ISM) announced on Tuesday that the manufacturing index in August was 52.9, higher than 50 for the first time since January 2008, with estimated index at 50.5, indicating the US manufacturing industry is recovering. Today, SHFE zinc prices slipped due mainly to falling SHFE copper prices, so any downward room for SHFE zinc prices will be limited in the short term given the support from purchasing interest at lower prices.

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