SHANGHAI, Jul. 20 (SMM) – LME zinc prices overnight opened at USD 1,873/mt, fluctuating between USD 1,870-1,880/mt after opening. The market gained confidence as Prime Minister Wen Jiabao's statement spurred speculations over additional easing monetary policies, pushing up LME zinc prices to USD 1,890/mt. LME zinc prices inched down after the release of US jobless claims data and second-hand home sales, but the sluggish data raised expectations that US Federal Reserve will push QE3 to simulate economy, so LME zinc prices rose near the end of trading and finally closed at USD 1,887/mt, up USD 18/mt, or 0.96%. LME inventories were still above 1 million mt despite a decrease of 2,200 mt/
LME zinc prices should move between USD 1,880-1,900/mt today, and SHFE three-month zinc contract prices should move between RMB 14,800-14,950/mt, with spot discounts between RMB 110-140/mt.