SHANGHAI, Jun. 21 (SMM) – LME zinc prices remained stable between USD 1,890-1,900/mt overnight. During European trading session, the Fed did not introduce QE3 measures and only extended Operation Twist. As such, LME zinc prices dropped sharply and hit a low of USD 1,855/mt to finally close at USD 1,869/mt, down USD 30/mt, or 1.58%. Trading volumes were down 541 lots to 7,878 lots, and positions remained little changed from the previous trading day at 263,711 lots.
On Thursday, the most active SHFE zinc contract price should move between RMB 14,700-14,850/mt, while spot discounts against SHFE zinc prices are expected to narrow to RMB 50-80/mt.