SHANGHAI, Mar. 27 (SMM) – The market was dominated by European debt crisis. Fitch included Cyprus'rating in negative watch list as the country's banking system may harm its domestic economy and public finance. Besides, IMF draft shows it lowered forecasts for global economic growth this year, increasing market risk aversion sentiment. US major economic data released overnight was mixed, and failed to boost investor confidence. In this context, LME zinc prices closed down. LME zinc prices overnight opened flat at USD 1,945/mt, and then fluctuated between the 5-day and 10-day moving averages. As investor confidence was depressed due to growing European debt crisis, LME zinc prices pulled down and finally closed at USD 1,913/mt, down USD 31/mt or 1.59%. Trading volumes increased by 4,615 lots to 11,021 lots, and total position increased by 161 lots to 251,548 lots. LME zinc inventories fell by 4,450 mt, to 1,184,700 mt.
LME zinc prices should fluctuate between USD 1,900-1,935/mt today, and SHFE 1306 zinc contract prices should move between RMB 14,750-14,900/mt, with spot discounts against SHFE three-month zinc contract prices narrowing to RMB 150-180/mt.