SHANGHAI, Aug. 6 (SMM) – Economic indicators from the US were mixed yesterday. ADP’s employment in July hit a new low since April, but ISM’s manufacturing index topped market expectations. Employment and New Order Index hit a 10-year high. The US dollar index remained high. When combined with sluggish stocks market in China, base metals prices were weighed on.
LME zinc prices opened at USD 1917/mt, and fluctuated between USD 1,910-1,920/mt. During European and US trading session, LME zinc prices dipped to USD 1,900/mt on selling pressure, and closed at USD 1,893.5/mt, down USD 24.5/mt or 1.28%. Trading volumes decreased 933 to 9,717 lots, and total positions grew 1,411 to over 300,000. LME zinc inventories grew 75 to 430,875 mt.
SHFE 1510 zinc contract prices opened low at RMB 14,680/mt Wednesday evening, then hovered between RMB 14,580-14,630/mt, and closed at RMB 14,600/mt, down RMB 135/mt or 0.92%.
LME zinc prices should move between USD 1,880-1,910/mt today, and SHEF 1510 zinc contract prices will hover between RMB 14,550-14,650/mt, with spot premiums of RMB 290-340/mt.