SMM Zinc Market Morning Review (2013-4-3)

SHANGHAI, Apr. 3 (SMM) – LME zinc prices overnight opened at USD 1,890/mt, and touched USD 1,898/mt after opening. During Asian trading hours, LME zinc prices generally moved between USD 1,890-1,900/mt due to mixed Asian stocks markets and a lack of positive news. After Asian trading hours, as major economic data form euro zone countries fell short of expectations, the market was concerned euro zone recession will improve. Despite positive economic data from US, a stronger US dollar index weighed down LME zinc prices. In this context, LME zinc prices inched down and found support at USD 1,860/mt, and finally closed at USD 1,859/mt, down USD 37/mt or 1.95%. Trading volumes increased by 4,846 lots to 14,744 lots, and total position increased by 3,022 lots to 264,285 lots. LME zinc inventories fell by 4,425 mt, to 1,171,100 mt.

LME zinc prices are expected to move between USD 1,850-1,880/mt today, and SHFE 1306 zinc contract prices should fluctuate between RMB 14,550-14,650/mt, with spot discounts between RMB 50-100/mt.