SHANGHAI, Mar. 4 (SMM) – LME zinc prices last Friday opened at USD 2,067/mt. China's PMI for February dropped from 50.4 in January, to 50.1, pushing down LME zinc prices to USD 2,060-2,075/mt. After Asian trading hours, eurozone unemployment rate hit a new high. The meet between US President Obama and Congress leaders turned out to be disappointing. That means spending cut will kick off, and this depressed investor confidence. As a result, large numbers of shorts entered the market, weighing down LME zinc prices to a record high since late January of USD 2,017/mt. But US ISM manufacturing index in February was strong, and this helped offset some pessimism. In this context, LME zinc prices finally closed at USD 2,028/mt, down 40.5/mt or 1.96%. Trading volumes increased by 3,204 lots to 15,347 lots, and total position decreased by 6,590 lots to 277,227 lots.
LME zinc prices should fluctuate between USD 2,015-2,045/mt today, and SHFE 1305 zinc contract prices should move between RMB 15,300-15,450/mt, with spot discounts against SHFE 1305 zinc contract prices between RMB 250-280/mt.