SMM Zinc Market Morning Review (2013-1-4)

SHANGHAI, Jan. 4 (SMM) – LME zinc prices overnight opened at USD 2,144/mt, and touched USD 2,185/mt in the morning trading. But since the US dollar index inched up and reached 80.6, LME zinc prices reversed  increases and dipped to an intraday low of USD 2,081/mt. The mixed US ADP’s employment data for December and the number of US jobless claims last week did not give any guidance to the market. LME zinc prices finally closed at USD 2,087.5/mt, down USD 54.5/mt or 2.54%. LME zinc inventories fell by 2,675 mt to 1,218,050 mt.

LME zinc prices should fluctuated between USD 2,080-2,130/mt today, and SHFE three-month zinc contract prices should move between RMB 15,500-15,650/mt, with spot discounts expanding to RMB 350-400/mt.