SHANGHAI, Oct. 23 (SMM) – Last weekend's EU summit did not report significant progress, and the EU debt issue continued to haunt market. During the Asian trading hours, LME zinc prices opened at USD 1,878/mt but fell rapidly after hitting a high at USD 1,896.8/mt after Japan announced expanded trade deficit. During the European and US trading hours, LME zinc prices slightly rebound, but later were weighed down by shorts to hit at low at USD 1,854/mt. Finally, LME zinc prices closed at USD 1,863/mt, down USD 19/mt from a day earlier. LME zinc inventories reduced by 1,650 mt to 1,114,425 mt.
SMM expects that LME zinc prices will continue to fluctuate between USD 1,860-1,880/mt, and SHFE zinc for delivery in three months will fall to RMB 14,800-14,950/mt. In Shanghai zinc spot market, discounts will narrow to RMB 100-130/mt on Tuesday.