SMM Morning Review - 2012/5/9 Zinc Market

SHANGHAI, May 9 (SMM) – LME zinc prices overnight inched down as of the afternoon during Asian trading hours, falling below USD 2,000/mt level. The negotiation on the construction of multiparty coalition government in Greece failed, meaning Greece needs to have another general election, and triggering concerns that Greece will fail to cut budget and implement reform. As a result, Finally, LME zinc prices dropped sharply and closed at USD 1,976.5/mt, down USD 23.5/mt. SHFE three-month zinc contract prices should open lower as LME zinc prices plunged, and fall to RMB 15,350-15,550/mt, and spot discounts should narrow to RMB 80-140/mt.