SHANGHAI, Mar. 22(SMM) – LME zinc prices overnight opened at USD 1,935/mt, and touched USD 1,954/mt during the day due to improving HSBC's PMI for China. During European and US trading hours, Cyprus debt crisis took center stage. Cyprus is allowed to raise EUR 5.8 billion within a deadline by next Monday, and if it fails to meet the financing target, it will lose the chance for bailout from the EU, US Federal Reserve and European central bank. The market was concerned of the country's situation, and this offset US positive economic data. In this context, European and US stocks markets generally closed with declines, and the euro weakened, dragging down LME zinc prices. LME zinc prices inched down and finally closed at USD 1,938/mt, up USD 3/mt. Trading volumes increased by 774 lots to 9,400 lots, and total position increased by 2,306 lots to 252,634 lots. LME zinc inventories fell by 3,900 mt, to 1,195,825 mt.
LME zinc prices should fluctuate between USD 1,920-1,950/mt today, and SHFE 1306 zinc contract prices should move between RMB 14,850-15,050/mt, with spot discounts against SHFE three-month zinc contract prices between RMB 180-220/mt.