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SMM Morning Review - 2011/8/16 Zinc Market

iconAug 16, 2011 09:36
Source:SMM
Yesterday, as better-than-expected economic conditions in Japan in April-June boosted market sentiment, LME zinc prices climbed strongly above USD 2,200/mt in the morning session,

SHANGHAI, Aug. 16 (SMM) -- Yesterday, as better-than-expected economic conditions in Japan in April-June boosted market sentiment, LME zinc prices climbed strongly above USD 2,200/mt in the morning session, with prices even hitting a high of USD 2,231/mt. However, LME zinc prices dipped in the afternoon session due to a stronger US dollar, with prices falling below USD 2,200/mt. The softer US dollar index at night provided support for LME zinc prices, and LME zinc prices fluctuated narrowly between USD 2,170-2,190/mt, with prices finally closing at USD 2,194/mt, up USD 13/mt. SMM predicts SHFE 1111 zinc contract prices will continue to consolidate at RMB 17,000/mt and move between RMB 17,000-17,300/mt on Tuesday, and spot discounts will remain between negative RMB 250-300/mt against SHFE 1111 zinc contract prices. Downstream buying interest becomes lower when spot zinc prices are close to RMB 17,000/mt, so SMM predicts spot trading sentiment will be sluggish.  

zinc Zn

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