SMM Morning Review - 2012/7/26 Zinc Market

SHANGHAI, Jul. 26 (SMM) – LME zinc prices overnight opened at USD 1,801/mt, and inched up due to the weakening US dollar index. As the US dollar index surged in the afternoon and hit a record high, LME zinc prices plunged to USD 1,793.3/mt. US new home sales fell by the most in a year, boosting expectations US will take additional measures to stimulate economic growth. As a result, LME zinc prices were boosted and touched an intraday high USD 1,822/mt, and then fell to close at USD 1,812.5/mt, up USD 12.5/mt or 0.69%.

LME zinc prices should move between USD 1,790-1,820/mt today, and SHFE three-month zinc contract prices should move between RMB 14,400-14,550/mt, with spot discounts narrowing to RMB 50-80/mt.