SMM Morning Review - 2011/2/16 Zinc Market

SHANGHAI, Feb. 16 (SMM)--The US dollar index overnight moved between 78.3 and 78.6. However, China’ CPI for January was up 4.9% YoY, the highest level in 10 years. Meanwhile, England’s CPI for January was up 4%, doubling the target ceiling of 2% set by England’s central bank in early 2011, and also the highest level since November 2008. Such inflation figure in both China and England accelerated speculations that major economies will take additional tightening policies such as interest rate hike. In this context, LME zinc prices overnight fell by USD 30/mt, and finally closed at USD 2,475/mt above the 10-day moving average. Trading volumes decreased slightly by 2,000 lots to 66,376 lots, and total positions increased slightly by 500 lots to 239,561 lots.

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