SMM Zinc Price Forecast (Jan. 14-18)

SHANGHAI, Jan. 14 (SMM) – December CPI for the euro zone, Germany, the UK and US will be released in the coming week, and recent economic trends show European and US economies continue to improve. The US dollar index lacked upward momentum after rising for two consecutive days, so LME zinc prices should stop falling and stabilize in the coming week. LME zinc prices will still meet resistance at USD 2,100/mt, but LME zinc prices should stay between USD 2,030-2,080/mt. As upward momentum in the Shanghai Composite Index slows, SHFE 1304 zinc contract prices should gain some support, but still move between RMB 15,500-15,750/mt. Goods supply will increase after delivery, so spot discounts against SHFE three-month zinc contract prices will expand to RMB 320-370/mt.