SMM Zinc Market Morning Review (2013-3-21)

SHANGHAI, Mar. 21 (SMM) – Cyprus’ parliament denied the deposit tax proposal, clouding the outlook for the bailout fund. However, the financial minister of Cyprus is asking for extension of EUR 2.5 loans. If the extension is successful, market concern is expected to ease. The LME zinc contract for delivery in three month opened flat at USD 1,922/mt overnight, and later advanced to hit a high at USD 1,940.8/mt on rally in Asian stock market. During the European trading hours, the Fed kept assets purchasing plan, weighing down the US dollar, which sent zinc prices slightly higher. Finally, LME zinc prices finished at USD 1,935/mt, up USD 15/mt from a day earlier. Trading volumes reduced by 3,351 lots to 8,626 lots. Positions reduced by 14,603 lots to 250,328 lots. LME zinc inventories were down 3,175 mt to 1,199,725 mt.