SMM Morning Review - 2011/11/21 Zinc Market

SHANGHAI, Nov. 21 (SMM) – LME zinc prices last Friday moved between USD 1,890-1,910/mt during Asian trading hours. Rumors that European Central Bank will use loans from the IMF to aid large economies in the Euro zone pushed up the euro. As a result, the US dollar index plummeted, boosting LME zinc prices. In addition, the index of U.S. leading indicators climbed 0.9% in October, much higher than the forecast of 0.6%. In this context, LME zinc prices touched USD 1,970/mt, and fell to close at USD 1,937.5/mt, up USD 37.5/mt. LME zinc prices should move between USD 1,900-1,950/mt today, and SHFE three-month zinc contract prices should move between RMB 14,900-15,200/mt, with spot premiums of RMB 100/mt against SHFE 1202 zinc contract prices.