SMM Morning Review - 2011/9/6 Zinc Market

SHANGHAI, Sept. 6 (SMM) -- LME zinc prices gradually lost USD 2,200/mt yesterday due to a stronger US dollar. Later, the Euro-zone manufacturing PMI was 51.5 during August, the lowest since September 2009, triggering market panic sentiment. As a result, LME zinc prices further dipped to USD 2,155/mt, and finally closed at USD 2,175/mt, down USD 20/mt. SMM predicts SHFE 1111 zinc contract prices will likely open slightly lower today, with prices expected to hover between RMB 16,800-17,100/mt. Spot discounts will likely remain unchanged, with discounts expected to move between RMB 100-200/mt against SHFE 1111 zinc contract prices.