SHANGHAI, Jan. 23 (SMM) – LME zinc prices overnight opened at USD 2,032.5/mt, and soared immediately following opening. Bank of Japan stated it will accept a 2% inflation target, and will use additional easing monetary policies. As a result, LME zinc prices climbed but met resistance at the 20-day moving average, fluctuating between USD 2,040-2,045/mt, touching USD 2,046.3/mt. Zillow released a report saying US home prices rose 5.9% in 2012, the largest increase since 2006. Besides, both Travelers and Du Pont reported better-than-forecast earnings. In this context, LME zinc prices soared and broke through the 30-day moving average, touching an intraday high USD 2,064.8/mt, and closing at USD 2,063.5/mt, up USD 30.5/mt, or 1.5%. Trading volumes increased by 1,833 lots to 5,215 lots, and total position decreased by 3,791 lots to 278,418 lots.
LME zinc prices should fluctuated between USD 2,050-2,070/mt today, and SHFE three-month zinc contract prices should move between RMB 15,450-15,600/mt, with spot discounts expected to expand to RMB 290-320/mt.