SMM Zinc Market Morning Review (2013-1-8)

SHANGHAI, Jan. 8 (SMM) – LME zinc prices overnight opened lower at USD 2,049/mt, and fluctuated around USD 2,050/mt and touched USD 2,053/mt in the morning trading. But as short momentum mounted, LME zinc prices plunged to an intraday low of USD 2,015/mt. Eurozone Sentix CCI for January was -7.0, much better than the -16.8 the previous month, showing eurozone debt crisis eased sharply. Besides, the US dollar index plummeted to 80.3 due to dropping US stocks, so LME zinc prices gained back some losses and finally closed at USD 2,027/mt, down USD 16.5/mt. LME zinc inventories fell by 2,750 mt to 1,212,575 mt.

LME zinc prices should fluctuated between USD 2,010-2,040/mt today, and SHFE three-month zinc contract prices should move between RMB 15,350-15,550/mt, with spot discounts RMB 270-320/mt.