SMM Morning Review - 2012/6/28 Zinc Market

SHANGHAI, Jun. 28 (SMM) – LME zinc prices overnight opened lower at USD 1,809/mt and generally moved between USD 1,805-1,815/mt in the morning session. Due to disappointing result of the EU summit, LME zinc prices plunged to an intraday low at USD 1,746.8/mt. Owning to rumors that euro zone will likely lower interest rates, and since US durable goods orders were up 1.1% in May, LME zinc prices were boosted and touched USD 1,773.5/mt, and fluctuated narrowly later in the day, with prices finally closing at USD 1,764/mt, down USD 16/mt.

LME zinc prices should move between USD 1,760-1,780/mt today, and SHFE three-month zinc contract prices should fall to RMB 14,150-14,300/mt, with spot goods prices RMB 0-10/mt higher or RMB 0-10/mt below SHFE zinc prices.