SHANGHAI, Jan. 30 (SMM) -- The US Federal Reserve pledged to maintain low interest rates, spurring market optimism. As a result, LME zinc prices broke through USD 2,100/mt and even hit USD 2,200/mt, returning to the level in September 2011. As of January 27th, LME zinc prices closed at USD 2,148.3/mt, up USD 132.3/mt from the pre-holiday level and up 6.5%.
SMM predicts SHFE three-month zinc contract prices may open significantly higher and may even climb by the daily price limit, with prices expected to move between RMB 16,200-16,700/mt. As today is the first trading day following the Chinese New Year holiday, spot discounts may expand to between negative RMB 300-500/mt over SHFE three-month zinc contract prices.