Shanghai, May 29 (SMM) – During Asian trading hours, LME zinc market opened at USD 1,908/mt, and then rose mildly to USD 1,913/mt during European and US trading hours, supported by SHFE zinc price gains from a falling dollar. Later, the Spain’s bond yield jumped to a 6-month high. As a result, LME zinc market closed lower at USD 1,908.8/mt. Transactions were up 33,962 lots to 103,570 lots, while positions were up 6,764 lots to 153,190 lots.
Market worries over the European debt issues remain. Coupled with the soaring yields on Spanish bonds, LME zinc market is expected to consolidate at USD 1,900/mt, with prices between USD 1,890-1,920/mt. SHFE three-month zinc prices may drop slightly, with prices between RMB 14,800-15,000/mt, and spot discounts will narrow to RMB 80-130/mt.