SHANGHAI, Jan. 25 (SMM) – LME zinc prices overnight opened higher at USD 2,075/mt, and fell immediately following opening. HSBC’s January PMI for China was better than forecast. But as the US dollar index gained ground in the morning trading and consolidate 80 level, LME zinc prices dropped sharply to the 60-day moving average. After Asian trading, LME zinc prices extended declines and dipped to USD 2,058.3/mt. Major economic data for January in France, Germany and euro zone generally topped expectations. Besides, the number of US first-time unemployment for last week unexpectedly decreased to the lowest since 2008. As a result, LME zinc prices soared to USD 2,104/mt, but met strong resistance at USD 2,100/mt. With rising US dollar index and selling pressure, LME zinc prices sank at the end of trading, and closed at USD 2,083.8/mt, up USD 7.3/mt, or 0.35%. Trading volumes increased by 285 lots to 9,232 lots, and total position decreased by 1,173 lots to 274,993 lots.
LME zinc prices should fluctuate between USD 2,070-20,100/mt today, and SHFE three-month zinc contract prices should move between RMB 15,500-15,650/mt, with spot discounts expected to expand to RMB 270-310/mt.
