SHANGHAI, Feb. 25 (SMM) – LME zinc opened at USD 2,116.3/mt last Friday. As the US dollar index softened, dip-buying increased, pushing LME zinc up to USD 2,125-2,130/mt. Asian stock markets also rebounded following earlier heavy losses. In the afternoon, LME zinc found its high at USD 2,136.5/mt. Later, Germany announced its 4Q GDP was line with estimates and that its IFO Business Confidence beat forecast in February. However, the European Commission lowered its forecast for euro zone’s economic growth in 2013 from a 0.1% growth to -0.3%. In response, investors turned away from risky assets, weighing down the euro. LME zinc gave back gains and slid to USD 2,082/mt. Finally, LME zinc closed at USD 2,086/mt, down USD 28/mt or 1.32%. Trading volumes were down 450 lots to 9,639 lots, while positions were up 2,714 lots to 294,506 lots.
LME zinc extended losses for an eighth straight day, but dip-buying increased last Friday. LME zinc should move within USD 2,090-2,110/mt on Monday, and SHFE 1305 zinc contract prices are expected to fluctuate between RMB 15,500-15,700/mt, with spot discounts expected at RMB 280-320/mt.