SHANGHAI, Jun. 20 (SMM) – LME zinc prices opened at USD 1888.5/mt overnight and moved within the USD 1,883-1,896/mt range. During European trading session, LME zinc prices hit a low of USD 1,872/mt as US dollar edged up. Later, however, positive news was reported from the G20 summit. Besides, market focuses on the Fed’s meeting scheduled for this week. Since Operation Twist in the US will come to an end by the end of June and since the global economic conditions, particularly US economy, were worse than expected, new easing policies are likely to be implemented, market expects the Fed may extend Operation Twist and introduce QE3 measures. In this context, LME zinc prices rallied to touch an intraday high of USD 1,899.8/mt and finally closed at USD 1,899/mt, up USD 17/mt.
On Wednesday, the most active SHFE zinc prices may move between RMB 14,900-15,100/mt while spot discounts in domestic spot zinc market may be RMB 100-120/mt.