SMM Morning Review - 2011/8/26 Zinc Market

SHANGHAI, Aug. 26 (SMM)--LME zinc prices overnight continued rising steadily and broke through USD 2,200/mt at noon. According to data, the number of US jobless claims for the week ending August 20 jumped to 417,000, much higher than the expected 405,000, pushing up the US dollar index to 74.3. But speculations of a bracing results of the meeting this evening by the US Fed boosted LME zinc prices to finally close at USD 2,230/mt, up USD 56/mt. SHFE three-month zinc contract prices should open at RMB 17,000/mt level, moving between RMB 17,000-17,300/mt, with spot discounts expanding to negative RMB 150-250/mt against SHFE 1110 zinc contract prices. Investors should close aggressively positions at the end of the week.