SMM Morning Review - 2011/1/12 Zinc Market

SHANGHAI, Jan. 12 (SMM) – LME zinc prices overnight continued to fluctuate and met resistance due to concerns over eurozone debt crisis. German GDP in 4Q was expected to fall 0.25%, while Spanish industry yields were down 7% in November. As a result, LME zinc prices met resistance at the 60-day moving average and finally closed at USD 1,931/mt, up 11.3/mt or 2.71%. China's CPI will be released today, and SHFE 1203 zinc contract prices should rise slightly and move between RMB 14,850-15,150/mt today, with spot discounts between negative RMB 250-350/mt.