SMM Zinc Market Morning Review (2012/10/8)

SHANGHAI, Oct. 8 (SMM) – Despite positive economic data from major economies, LME zinc prices were weighed during China’s National Day holiday due to mounting inventory pressure. During last Friday’s Asian trading hours, LME zinc prices began to slip and hit a low at USD 2,052/mt after losing support at 20-day moving average. During the late trading hours, boosted by the news that the US unemployment rate fell from 8.1% for August to 7.8% for September, LME zinc prices pared certain losses and finally closed at USD 2,074/mt, down USD 1.5/mt from a day earlier.

LME zinc prices should move between USD 2,030-2,050/mt today, and SHFE 1301 zinc contract prices should move between RMB 15,400-15,500/mt, with spot discounts between RMB 300-330/mt.