SMM Morning Review - 2011/10/26 Zinc Market

SHANGHAI, Oct. 26 (SMM) – LME zinc prices overnight surged to USD 1,940/mt during Asian trading hours, but inched down later the day. It was reported the meeting of EU finance ministers would be canceled, although EU summit will still take place, market optimism was depressed significantly. Meanwhile, US CCI in October fell to 39.8, much lower than 46.4 in September, further depressing market confidence. As a result, LME zinc prices dipped to close at USD 1,852/mt, down USD 38/mt. SHFE three-month zinc contract prices should open lower at move between RMB 14,700-15,000/mt today, with spot premiums of RMB 50/mt.