SMM Zinc Price Forecast (Jan. 21-25)

SHANGHAI, Jan. 21 (SMM) – Major economic data from China and the US failed to boost market sentiment, while ongoing negotiations over the US debt ceiling continue to concern markets. US December housing starts and new home sales gave a boost to market confidence, but investors remain cautious given the euro zone and German ZEW economic sentiment index for January. In general, major economic data was mixed, so LME zinc prices are expected to fluctuate between USD 2,000-2,050/mt in the coming week. In China, HSBC’s preliminary January PMI for China will be released soon, but investors expect Chinese manufacturing will show improvements, which will allow SHFE three-month zinc contract prices to move between RMB 15,300-15,500/mt in the coming week. Spot goods supply will be sufficient due to the release of delivered goods, with spot discounts expanding to RMB 280-320/mt.