SMM Morning Review - 2011/9/20 Zinc Market

SHANGHAI, Sept. 20 (SMM) -- LME zinc prices slipped gradually in Asian trading hours yesterday. EU finance ministers failed to offer a specific plan to halt Greece's debt crisis after the meeting, triggering market fears of Greek debt crisis. In addition, economic data from the US shows that the homebuilders' confidence in September dipped, and housing market index remained low. As a result, LME zinc prices declined below USD 2,100/mt, with prices finally closing at USD 2,111/mt, down USD 51/mt. SMM predicts SHFE three-month zinc contract prices will move between RMB 16,100-16,400/mt after opening slightly lower on Tuesday, while spot discounts will again narrow to negative RMB 50-100/mt.