SMM Zinc Market Morning Review (2013-3-13)

SHANGHAI, Mar. 13 (SMM) – LME zinc prices overnight opened at USD 1,965.5/mt, and then briefly touched USD 1,984/mt. As Asian stocks closed with declines, LME zinc prices slumped to USD 1,959/mt. But since the US dollar index weakened, LME zinc prices broke through USD 2,000/mt, and touched USD 2,006.5/mt, and then inched down slightly at the end of the trading, with prices finally closing at USD 1,987.8/mt, up USD 24.3/mt or 1.24%. Trading volumes decreased by 5,037 lots to 11,706 lots, and total position decreased by 3,873 lots to 257,340 lots. LME zinc inventories grew by 1,875 mt, to 12,095,550 mt.

LME zinc prices should fluctuate between USD 1,975-2,005/mt today, and SHFE 1306 zinc contract prices should move between RMB 15,200-15,350/mt, with spot discounts against SHFE 1305 zinc contract prices between RMB 180-220/mt.