SMM Morning Review - 2012/6/26 Zinc Market

SHANGHAI, Jun. 26 (SMM) – LME zinc prices overnight opened lower and rose slightly to USD 1,828/mt due to the weak US dollar index. Spain and Cyprus officially applied for bailout, but did not announce any bailout clause and requirements, causing market uncertainty to grow and weighing down the euro during the whole trading day. Besides, investors were more pessimistic as to whether the EU summit will result in any achievement, and Moody’s downgraded the ratings of 28 Spanish banks, pushing down LME zinc prices. As the end of trading, LME zinc prices rebounded slightly and finally closed at USD 1,808.5/mt, down USD 1.5/mt.

LME zinc prices should move between USD 1,800-1,820/mt today, and SHFE three-month zinc contract prices should move between RMB 14,500-14,650/mt, with spot discounts remaining between RMB 40-60/mt.