SHANGHAI, Mar. 6 (SMM) -- LME zinc prices slipped slowly during Asian trading hours. The US Institute for Supply Management (ISM) announced that the non-manufacturing sector's Purchasing Managers Index (PMI) was 57.3 during February, higher than January’s 56.8, while factory orders in January fell by 1.0%, to USD 462.58 billion, smaller than the expected 1.6% drop. In addition, China announced earlier to lower its GDP growth target in 2012 to 7.5%. As a result, LME zinc prices accelerated declines to below USD 2,100/mt, with prices finally closing at USD 2,090/mt, down USD 28/mt.
SMM predicts SHFE three-month zinc contract prices may open lower and hover between RMB 15,750-16,050/mt today, while spot discounts will narrow to RMB 250-300/mt.