SMM Zinc Market Morning Review (2012-10-24)

SHANGHAI, Oct. 24 (SMM) – LME zinc prices overnight opened at USD 1，867/mt, and once touched USD 1,879/mt in the morning trading. But due to the strong US dollar index, LME zinc prices entered downward track. US stocks plunged due to negative news, while expectations that Bank of Canada will lower interest rates failed, pushing up the US dollar index to 80. US October Richmond FED manufacturing index slid to -7, showing the sector was still sluggish. As a result, LME zinc prices dipped to USD 1,830/mt, and finally closed at USD 1,854/mt, down USD 9/mt. LME zinc inventories fell by 1,575 mt, to 1,112,850 mt.

LME zinc prices are expected to fall to USD 1,830-1,850/mt today, and SHFE 1301 zinc contract prices should move between RMB 14,750-14,900/mt, with spot discounts between RMB 90-130/mt.