Shanghai, Jul. 24 (SMM) – LME zinc market overnight opened lower at USD 1,838/mt during Asian trading hours, and then a stronger dollar continued to drag down LME zinc. During European and US trading hours, a slew of negative news dampened the market. Six regions in Spain may apply for financial help from Madrid, and Moody’s lowered the outlook for the credit ratings of Germany, the Netherlands and Luxembourg, citing increased uncertainties over the European debt issues. Besides, the US dollar index surged to 83.999, a new high since August 2010. In this context, LME zinc hit a recent low of USD 1,801.5/mt, and then closed at USD 1,814/mt after paring some losses, down USD 24.5/mt or 1.33%.
Market confidence has been dented after the Moody’s cut the outlook for the credit rating of Germany. LME zinc may test USD 1,800/mt on Tuesday, with prices between USD 1,800-1,830/mt. SHFE 1211 zinc prices will try to find support at RMB 14,500/mt, with prices between RMB 14,450-14,600/mt, and spot discounts will range from RMB 30-70/mt.
