SHANGHAI, Apr. 8 (SMM) – LME zinc prices gained back some losses during the Qingming holiday in China due to a strengthening euro. US ADP March employment data fell short of forecasts, triggering market concerns towards US non-farm data, and weighing down LME zinc prices to test USD 1,850/mt. Later in the week, Japan began to implement QE without announcing a deadline, while European central bank President Mario Draghi expressed his pessimism towards economy, and said they will maintain easing monetary policy in a long term. The sluggish US employment data helped ease concerns that US will quit monetary easing policies in advance. As a result, investor risk appetite increased, and pulled up the euro, prompting profits hunters to enter the market and driving LME zinc prices to gain back some previous losses. But the number of US non-farm employment data recorded 88,000, much lower than the 190,000 expected, and this weighed down LME zinc prices again to USD 1,880-1,895/mt. LME zinc inventories fell by 16,600 mt, to 1.15 million mt.
LME zinc prices are expected to move between USD 1,860-1,890/mt today, and SHFE 1307 zinc contract prices should fluctuate between RMB 14,550-14,700/mt, with spot discounts between RMB 60-90/mt against SHFE 1306 zinc contract prices.
