SMM Morning Review - 2012/6/1 Zinc Market

SHANGHAI, Jun. 1 (SMM) – LME zinc prices overnight opened lower at USD 1,889/mt during Asian trading hours and hovered around the 5-day moving average later in the day. LME zinc prices rose and broke through USD 1,900/mt level, and touched USD 1,904.5/mt on news that European officials will support the banking sector in capital restructuring and form an alliance in the sector. But since US jobless claims for last week were 383,000, while ADP's employments were 133,000, both lower than expected. In this context, LME zinc prices finally closed at USD 1,881/mt, down USD 11.8/mt or 0.62%.
 
LME zinc prices should fluctuate weakly between USD 1,870-1,890/mt today. SHFE three-month zinc contract prices should move between RMB 14,700-14,900/mt today, with spot discounts between RMB 70-120/mt.