SMM Zinc Market Morning Review (2013-3-6)

SHANGHAI, Mar. 6 (SMM) – LME zinc prices overnight opened at USD 2,010/mt. During Asian trading hours, China’s government work report boosted market confidence. In this context, the US dollar index dropped after rising briefly, opening low and moving lower, and drove up LME zinc prices to USD 2,035.3/mt. But European investor buying interest was low due to the sluggish euro. In this context, LME zinc prices fell and finally closed at USD 2,012/mt, up 5/mt or 0.25%. Trading volumes decreased by 1,860 lots to 11,606 lots, and total position decreased by 1,491 lots to 271,116 lots. LME zinc inventories fell by 4,550 mt to 1,193,750 mt.

LME zinc prices should fluctuate between USD 2,010-2,035/mt today, and SHFE 1305 zinc contract prices should move between RMB 15,400-15,550/mt, with spot discounts against SHFE 1305 zinc contract prices between RMB 230-270/mt.