SMM Morning Review - 2011/8/8 Zinc Market

SHANGHAI, Aug. 8 (SMM)--Last Friday, LME zinc prices plunged to USD 2,260/mt in the morning session during Asian trading hours, dragged down by SHFE zinc prices, with prices generally moving between USD 2,240-2,260/mt. US non-farm jobs increased by 117,000 in July, and the private sector added 154,000 jobs, both better than forecasts. But due to ongoing concerns over the US economic condition and European debt crisis, LME zinc prices plummeted further to USD 2,197/mt, then rallied at the end of trading to close at USD 2,225/mt, down USD 115/mt. As Standard & Poor’s downgraded US credit rating on the morning of last Saturday, market confidence may be further depressed. In this context, SHFE 1110 zinc contract prices will likely fall to RMB 17,000/mt, with discounts narrowing to negative RMB 100-200/mt.

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