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SMM Zinc Market Morning Review (2012-11-6)

iconNov 6, 2012 09:58
Source:SMM
LME zinc prices will move between USD 1,840-1,870/mt, SHFE zinc 1302 contract prices will remain stable, and Shanghai zinc spot discounts over SHF zinc 1302 contract will be RMB 160-180/mt.

SHANGHAI, Nov. 6 (SMM) – Risk aversion sentiment was relatively strong before the US presidential election, which pushed up the US dollar index and weighed down base metal prices. LME zinc for delivery in three months fell to hit a low at USD 1,842.3/mt after opening at USD 1,871/mt. During the European trading hours, the Sentix investor confidence index for October was -18.8, better than market expectation, which boosted LME zinc prices to hit intraday high at USD 1,874.5/mt. However, the US ISM manufacturing index for October fell to 54.2, dampening upward momentum of LME zinc prices. Finally, LME zinc prices closed at USD 1,866/mt, down USD 2.5/mt. LME zinc inventories fell 725 mt to 1,169,300 mt.

Market sentiment will remain cautious before the US presidential election. SMM expects that LME zinc prices will move between USD 1,840-1,870/mt, SHFE zinc 1302 contract prices will remain stable, and Shanghai spot zinc discounts over SHF zinc 1302 contract will be RMB 160-180/mt on Tuesday.

 

LME zinc price
SHFE zinc price
Shanghai zinc spot price

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