Japan Official Zn Price Increases by 5,000 /T

Mitsui Mining & Smelting announced on Tuesday the firm revised up the official zinc ingot price by 5,000 yen to 205,000 yen per tonne for July shipment, which marked the yearly high. The monthly averaged price would be 192,500 yen without anymore revision within July.

Zinc price at London Metal Exchange increased by US$ 28.50 to US$ 1,706 per tonne on Monday, which recovered US$ 1,700 for the first time since late September 2008. LME zinc price was US$ 1,643 per tonne on previous revision by Mitsui Mining & Smelting on July 20.

Zinc inventory at LME increased to more than 360,000 tonnes range for the first time since February 2006 and the stock is likely to increase more. However, speculative funds flow in metal and crude oil futures market and equity market due to the expectation for the economic recovery. Zinc price is increasing regardless of the real demand.