SMM Morning Review - 2011/9/22 Zinc Market

SHANGHAI, Sept. 22 (SMM)--LME zinc prices overnight surged to USD 2,100/mt, pushed up by SHFE zinc prices. The US Fed said it will purchase additional USD 400 billion government bonds to push down financial costs and stimulate spending and investment. In this context, the US dollar index once surged to 77.8, weighing down LME zinc prices to USD 2,060/mt, and with prices closing at USD 2,085/mt. SHFE 1112 zinc contract prices should fall to RMB 16,000/mt level, with discounts narrowing to USD 30-80/mt.