SMM Zinc Market Morning Review (2013-1-29)

SHANGHAI, Jan. 29 (SMM) – LME zinc prices overnight opened lower at USD 2,082/mt, and dipped immediately following opening to USD 2,073.3/mt. After fluctuating narrowly between USD 2,075-2,080/mt, LME zinc prices climbed as long momentum mounted. US durable goods orders data was positive, pulling up LME zinc prices to USD 2,092/mt. But US pending home sales in December fell short of forecasts, and new home sales data released last Friday was also downbeat. This triggered investor concerns, and pulled down LME zinc prices to close at USD 2,080/mt.

LME zinc prices should fluctuate between USD 2,075-2,100/mt today, and SHFE three-month zinc contract prices should move between RMB 15,550-15,700/mt, with spot discounts expected to expand to RMB 290-320/mt.