SMM Morning Review - 2011/11/28 Zinc Market

SHANGHAI, Nov. 28 (SMM) – The Standard & Poor's downgraded Belgium's long-term sovereign credit rating from "AA+", to "AA", with the outlook negative, causing market concerns to improve. In this context, the euro weakened and the US dollar index surged to 79.7, weighing down LME zinc prices to USD 1,875/mt. As a large number of investors entered the market, LME zinc prices gained back previous losses to at USD 1,897/mt, up USD 8.5/mt. Trading volumes increased by 557 lots to 5,041 lots, and total position increased by 5,329 lots to 278,864 lots. LME inventories fell by 1,300 mt, to 741,100 mt. With regard to today's price forecast, please see SMM Morning Meeting Minutes.