SHANGHAI, Jul. 18 (SMM) – LME zinc prices overnight opened at USD 1,884/mt and generally moved between USD 1,880-1,890/mt. As large numbers of shorts sold off goods, LME zinc prices plummeted to USD 1,874.3/mt. US industry output during June rose by 0.4%, while expectations of QE3 implementation grew due to recent disappointing economic data. But Bernanke did not mention QE3 in his testimony to Congress. As a result, LME zinc prices slumped to an intraday low USD 1,864/mt, and finally closed at USD 1,871.5/mt, down USD 16.3/mt, or 0.86%.
LME zinc prices should move between USD 1,870-1,890/mt today, and SHFE three-month zinc contract prices should move between RMB 14,750-14,900/mt, with spot discounts between RMB 90-120/mt.