SMM Morning Review - 2012/7/16 Zinc Market

SHANGHAI, Jul. 16 (SMM) – LME zinc prices last Friday opened at USD 1,845/mt and once touched USD 1,860/mt in the afternoon. The growth of China’s GDP during 2Q slowed to 7.6%, and the lowest since early 2009, but in line with market expectations, triggering speculations that China’s central bank will release further easing policies. Besides, the euro surged. As a result, LME zinc prices surged and touched USD 1,889/mt, and finally closed at USD 1,873.5/mt, up USD 27/mt, or 1.46%.

LME zinc prices should move between USD 1,850-1,880/mt today, and SHFE three-month zinc contract prices should move between RMB 14,700-14,850/mt, with spot discounts between RMB 100-120/mt.