Japan Official Zinc Price Continues to Decrease

Mitsui Mining & Smelting announced on Thursday the firm decreased official zinc ingot price by 45,000 yen to 388,000 yen per tonne for domestic shipment in June. The price declined by the widest range in 2006, as much as the revision on May 17, and became to below 400,000 yen for the first time in 2 months, when overseas zinc market continued to decrease. The monthly average became to 416,000 yen.Zinc spot price at London Metal Exchange (LME) decreased by US$ 30 to US$ 3,060 per tonne at settlement on Wednesday from the previous day, declining for 7 trading days in a row. Spot supply is tight with decreasing zinc inventory held by LME. However, most commodity markets including gold and copper are rapidly turning worse and speculative funds are flowing out from zinc market.The telegraphic transfer selling (TTS) rate became to 116.15 yen per one US dollar on Thursday from 115.29 yen on May 12 when Mitsui Mining & Smelting previously revised down official zinc price.