SMM Morning Review - 2011/8/19 Zinc Market

SHANGHAI, Aug. 19 (SMM)--LME zinc prices overnight fell in the morning session during Asian trading hours, but then surged to as high as USD 2,234/mt at noon, and with prices inching down later the day due to rebounding US dollar index. The number of US jobless claims for the week ending August 13 rose to 408,000, compared to a forecast of 400,000. The poor data depressed market confidence, weighing down LME zinc prices to USD 2,200/mt, with prices finally closing at USD 2,164/mt, down USD 49/mt. SHFE 1111 zinc contract prices should open lower today, moving between RMB 16,750-17,050/mt, with spot discounts narrowing to negative RMB 150-250/mt. Downstream buying interest should be low as zinc prices fluctuate ahead of the weekend.