SMM Zinc Market Morning Review (2012/10/11)

SHANGHAI, Oct. 11 (SMM) – LME zinc prices overnight inched down below USD 2,000/mt as the US dollar index jumped to 80, and continued to fall during the day. Stand & Poor's downgraded Spain’s rating by two notches to BBB-, with the outlook negative, causing market concerns to deepen. As a result, LME zinc prices slid further and finally closed at USD 1,978/mt, down USD 36/mt or 1.79%. LME zinc inventories surged by 8,075 mt, to 1,009,575 mt, and cancelled warrants also increased to 358,575 mt, accounting for 35.52%.

LME zinc prices should move between USD 1,960-1,980/mt today, and SHFE 1301 zinc contract prices should move between RMB 15,200-15,350/mt, with spot discounts between RMB 200-240/mt.