SHANGHAI, Feb. 27 (SMM) – LME zinc climbed to USD 2,095/mt after opening at USD 2,084/mt overnight. During the Asian trading hours, many stock markets in Asia declined due to falling US stock markets overnight, with the Shanghai Composite Index sinking to 2,289.89 points, down 1.4% in a single day. However, Bernanke hinted that he will support the US Federal Reserve to continue easing monetary policy during his speech last night. Economic indicators announced by the US exceeded forecasts, boosting market confidence and pushing LME zinc up. Finally, LME zinc closed at USD 2,108/mt, up USD 21.5/mt or 1.03%. Trading volumes were up 1,268 lots to 10,139 lots, while positions were down 3,187 lots to 287,943 lots. LME zinc inventories decreased 4,525 mt to 1,176,125 mt.
Bernanke’s speech helped ease market worries and forecast-beating economic figures in the US drove LME zinc up overnight. LME zinc should extend gains and move within USD 2,100-2,125/mt on Wednesday. SHFE 1305 zinc contract prices should fluctuate in the range of RMB 15,650-15,800/mt after a high opening, with spot discounts expected to expand slightly to RMB 290-340/mt.