SHANGHAI, Jun. 8 (SMM) – LME zinc prices opened higher at USD 1,889/mt during Asian trading hours and plunged to the 5-day moving average due to weak SHFE zinc prices. As China,s central bank would lower interest rates for one-year deposit and loans by 0.25 percentage points starting June 8th, LME zinc prices climbed to an intraday high at USD 1,916/mt. But since Spain,s credit rating was downgraded, and Bernanke did not mention QE3 implementation, LME zinc prices gave back previous gains and finally closed at USD 1,903.8/mt, up USD 10.8/mt.
LME zinc prices should move between USD 1,890-1,930/mt today, and SHFE three-month zinc contract prices should move between RMB 14,850-15,000/mt, with spot discounts expanding to RMB 70-120/mt.