SMM Zinc Market Morning Review (2013-1-16)

SHANGHAI, Jan. 16 (SMM) – LME zinc prices overnight opened at USD 2,002/mt, but then slumped after touching USD 2,008/mt due to strong short momentum. Germany's 4Q GDP was 0.7%, slightly lower than the expected 0.8%, showing eurozone economy lacks momentum to recover. US retail sales and local January manufacturing index were mixed, without a direction for the market. LME zinc prices generally moved between USD 1,982-1,992/mt in the afternoon, dipping to USD 1,981.3/mt, and then shed some losses to close at USD 1,997/mt, down USD 3/mt. LME zinc inventories grew by 6,075 mt to 1,221,950 mt.

LME zinc prices should fluctuated between USD 1,980-2,020/mt today, and SHFE three-month zinc contract prices should slip to RMB 15,200-15,350/mt, with spot discounts RMB 220-270/mt.