SHANGHAI, Mar. 11 (SMM) – LME zinc prices last Friday opened at USD 1,991/mt, and struggled around USD 1,995/mt during Asian trading hours as investors were cautious. After Asian trading hours, LME zinc prices slumped to USD 1,985/mt as short momentum increased. US unemployment rate in February was better than forecasts, boosting LME zinc prices. But the strong US economic data caused expectations that the US Federal Reserve will quit stimulus policies in advance to improve. Besides, the strengthening US dollar index and weakening euro also weighed down LME zinc prices. In this context, LME zinc prices dropped to USD 1,974/mt, down USD 10% or 0.5%. Trading volumes decreased by 3,351 lots to 8,130 lots, and total position decreased by 3,366 lots to 264,030 lots. LME zinc inventories fell by 2,475 mt, to 1,195,550 mt.
LME zinc prices should fluctuate between USD 1,975-2,000/mt today, and SHFE 1306 zinc contract prices should move between RMB 15,250-15,350/mt, with spot discounts against SHFE 1305 zinc contract prices between RMB 300-330/mt.