SMM Morning Review - 2011/10/10 Zinc Market

SHANGHAI, Oct. 10 (SMM) – LME market was quiet during China’s National Day holiday. European debt crisis and weakened US economic data was the focus of the market. The US dollar index fluctuated at high levels during the holiday, touching a record high 79.8 early last week, and moving between 78-80 during the holiday. In this context, LME zinc prices fluctuated between USD 1,820-1,930/mt, closing at USD 1,918/mt on October 7th. SHFE three-month zinc contract prices are expected to move between RMB 15,050-15,350/mt today, with prices RMB 0-50/mt lower or RMB 0-50/mt higher than spot prices. Downstream buyers should remain cautious.