SHANGHAI, Mar. 12 (SMM) – LME zinc market overnight opened at USD 1,978/mt, and moved between USD 1,975-1,980/mt during Asian trading hours. With the closing of Asian trading hours, LME zinc was weighted down by strong short pressures, tumbling below the previous low of USD 1,966.5/mt, down as low as USD 1,928/mt, approaching the USD 1,925/mt mark. Later, the falling dollar and strong US equities, advancing for a seventh consecutive day, helped LME zinc regain some losses, and finally end at USD 1,963.5/mt, down USD 16.5/mt or 0.83%. Trading volumes were up 8,613 lots to 16,743 lots, and positions were down 2,817 lots to 261,213 lots. LME zinc inventories surged by 12,125 mt to 1,207,675 mt, leaving LME zinc the worst performer of the metals market.
The soaring LME zinc inventories will continue to weigh down zinc prices. SMM expects LME zinc to hover between USD 1,950-1,985/mt today. SHFE three-month zinc prices will move in the RMB 15,150-15,350/mt range and spot discounts over SHFE 1305 zinc contract are estimated between RMB 160-200/mt on Tuesday.