SMM Morning Review - 2011/11/10 Zinc Market

SHANGHAI, Nov. 10 (SMM) – LME zinc prices overnight fluctuated between USD 1,948-1,975/mt tracking SHFE zinc prices. As Italy's government bonds yields exceeded 7%, market concerns over global economic outlook and metal demand improved, pushing up the US dollar index to 78.04. As a result, LME zinc prices inched down to close at USD 1,936/mt, down USD 34/mt. LME zinc prices should fall further to test the 30-day moving average today. SHFE three-month zinc contract prices should move between RMB 15,000-15,300/mt, with prices RMB 0-100/mt higher than SHFE 1201 zinc contract prices.