SMM Morning Review – 2012/7/10 Zinc Market-Shanghai Metals Market

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SMM Morning Review – 2012/7/10 Zinc Market

Price Review & Forecast 09:58:28AM Jul 10, 2012 Source:SMM

Shanghai, Jul. 10 (SMM) – LME zinc market moved higher after opening at USD 1,838/mt during Asian hours. In the morning session, China released CPI for June eased to 2.2%, opening more room for China to adjust its monetary policy, with prices moving between USD 1,840-1,850/mt. Supported by strong movements in the SHFE zinc market, LME zinc advanced to USD 1,853/mt, but then fell back. During the European and US trading hours, the Eurozone finance ministers’ meeting, to discuss support for Spanish banks and using the bloc’s rescue funds to stabilize bond markets, failed to boost the market. The yield of Spanish 10-year bonds rose to the danger level of 7%, denting the zinc market. Later, the US Federal Reserve Board announced the consumer credit expanded in May by the most in five months, better than market expectations, helping support LME zinc prices back to USD 1,856/mt. Finally, LME zinc prices closed at USD 1,855.3/mt, up USD 15.8/mt or 0.86%.

The easing of inflation pressures in China has increased market expectations over more stimulus policies in the world’s largest metal consumer. LME zinc prices are expected to advance, with prices between USD 1,850-1,870/mt. SHFE three-month zinc prices will move between RMB 14,650-14,800/mt on Tuesday, and spot discounts will remain RMB 100-120/mt. 
 

SMM Morning Review – 2012/7/10 Zinc Market

Price Review & Forecast 09:58:28AM Jul 10, 2012 Source:SMM

Shanghai, Jul. 10 (SMM) – LME zinc market moved higher after opening at USD 1,838/mt during Asian hours. In the morning session, China released CPI for June eased to 2.2%, opening more room for China to adjust its monetary policy, with prices moving between USD 1,840-1,850/mt. Supported by strong movements in the SHFE zinc market, LME zinc advanced to USD 1,853/mt, but then fell back. During the European and US trading hours, the Eurozone finance ministers’ meeting, to discuss support for Spanish banks and using the bloc’s rescue funds to stabilize bond markets, failed to boost the market. The yield of Spanish 10-year bonds rose to the danger level of 7%, denting the zinc market. Later, the US Federal Reserve Board announced the consumer credit expanded in May by the most in five months, better than market expectations, helping support LME zinc prices back to USD 1,856/mt. Finally, LME zinc prices closed at USD 1,855.3/mt, up USD 15.8/mt or 0.86%.

The easing of inflation pressures in China has increased market expectations over more stimulus policies in the world’s largest metal consumer. LME zinc prices are expected to advance, with prices between USD 1,850-1,870/mt. SHFE three-month zinc prices will move between RMB 14,650-14,800/mt on Tuesday, and spot discounts will remain RMB 100-120/mt.