SMM Zinc Market Morning Review (2012/9/28)

SHANGHAI, Sept. 28 (SMM) – LME zinc prices overnight once dipped to USD 2,067/mt in the morning trading as large numbers of shorts sold off goods, and then fluctuated narrowly. In the afternoon, LME zinc prices pared some losses as SHFE zinc prices rose sharply. Concerns over European debt crisis eased as Spain released drafted budget, while the number of US jobless claims last week decreased to the lowest since July, indicating job markets are improving. In this context, LME zinc prices rose to USD 2,091.5/mt, and finally closed at USD 2,091.5/mt, up USD 8/mt or 0.38%.

LME zinc prices should move between USD 2,100-2,130/mt today, and SHFE 1301 zinc contract prices should move between RMB 15,500-15,700/mt, with spot discounts between RMB 270-300/mt.