SMM Morning Review - 2011/9/7 Zinc Market

SHANGHAI, Sept. 7 (SMM)--LME zinc prices overnight continued to fluctuate widely between USD 2,150-2,200/mt. As concerns over the debt crisis in Euro Zone dominated the market again, investors all sought for risk adverse assets, pushing up the US dollar index to 76. As a result, LME zinc prices dipped but then pared intraday losses to close at USD 2,200/mt, up USD 25/mt. SHFE three-month zinc contract prices should open slightly higher today, moving between RMB 16,900-17,200/mt, with discounts remaining between negative RMB 100-200/mt. Downstream buying interest should be low.