SMM Zinc Market Morning Review (2013-3-14)

SHANGHAI, Mar. 14 (SMM) – LME zinc prices overnight opened at USD 1,986/mt, and then briefly touched USD 2,012/mt in the morning trading as the US dollar index plunged twice. But since the US dollar index then hit a record high of 83.055, LME zinc prices pulled on the downside, giving back morning gains, and dipped to USD 1,973/mt, with prices finally closing at USD 1,983/mt, down USD 4.8/mt or 0.24%. Trading volumes decreased by 2,124 lots to 9,582 lots, and total position increased by 1,629 lots to 258,969 lots. LME zinc inventories fell by 1,125 mt, to 1,208,425 mt.

LME zinc prices should fluctuate between USD 1,975-2,010/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 170-210/mt.