SMM Morning Review - 2012/4/25 Zinc Market

SHANGHAI, Apr. 25 (SMM) – Results of Eurozone government bonds sales were positive, but US home presales dropped in March, while revised data in February was much higher than the initial figure. That indicates recovery in US home markets is unsteady. Besides, US consumers are more pessimistic in April due to rising gasoline prices and sluggish employment growth. As a result, LME zinc prices struggled at USD 2,000/mt level, and closed at USD 1,999.3/mt, up USD 8.8/mt. Since LME zinc prices failed to stand at USD 2,000/mt, and the Shanghai Composite Index has been falling, and due to cash flow problems at the end of the month, SHFE three-month zinc contract prices should move between RMB 15,400-15,600/mt today, with spot discounts narrowing to RMB 100-200/mt.