SHANGHAI, Feb. 2 (SMM) -- Yesterday, LME zinc prices once dipped to USD 2,070/mt in the midday during Asian trading hours. In the afternoon, manufacturing PMI for major economies was better than expected, with European economic data showing the manufacturing activity is improving. Meanwhile, US economic data shows that the employees in US private sector grew steadily, and construction spending increased as well. As a result, LME zinc prices climbed gradually to above the 10-day moving average, with prices finally closing at USD 2,117.5/mt, up USD 12.5/mt.
SMM expects SHFE three-month zinc contract prices to return above RMB 16,000/mt today given upbeat manufacturing data, moving between RMB 15,900-16,200/mt, while spot discounts are expected to widen to RMB 350-450/mt.