SMM Morning Review - 2010/7/29 Zinc Market

SHANGHAI, July 29 (SMM) -- Although the US durable goods orders released last night were disappointing, LME base metals prices extended rallies recorded in Asian trading hours, and LME three-month zinc contract prices finally closed at USD 1,955/mt, with solid support building gradually at USD 1,900/mt.

Now is still the seasonal low demand period in China, but SHFE zinc prices outperformed LME zinc prices recently, and SHFE 1011 zinc contract prices held steady at the RMB 16,000/mt mark. However, it is inevitable for zinc prices to undergo corrections on their upward track, creating opportunities for investors to build up stocks at relatively lower prices, and market sentiment will improve as a result.                

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