SHANGHAI, Apr. 11 (SMM) – The minute of the US Federal Reserve policy meeting released overnight did not give any directions to investors, but proposals that the Fed should end its assets purchase plan in 2013 won majority support, pushing up the US dollar index and weighing down LME zinc prices. China's copper imports in March slid 30.8% YoY, and import volume in Q1 was down 28.9% YoY. As global largest base metals consuming country, the sluggish import data triggered market concerns towards demand for base metals, and weighing on the base metal market. LME zinc prices overnight opened at USD 1,918/mt, meeting resistance at the 20-day moving average, and fluctuating between USD 1,915-1,925/mt. France's February industry and manufacturing data was better than forecasts, and Italy's February industrial production was also higher than expected, when combined with positive data from UK, concerns that euro zone will return to recession eased, boosting the euro. LME zinc prices thus gained ground and broke through the 20-day moving average, touching USD 1,932/mt. But the strengthening US dollar index and weak demand dragged down LME zinc prices, with prices closing at USD 1,909.5/mt, down USD 14/mt or 0.73%. Trading volumes decreased by 267 lots to 6,748 lots, and total positions decreased by 670 lots, to 272,000 lots. LME zinc inventories fell by 8,175 mt, to 1,133,650 mt.
LME zinc prices are expected to move between USD 1,890-1,920/mt today, and SHFE 1307 zinc contract prices should fluctuate between RMB 14,800-14,950/mt, with spot discounts between RMB 60-100/mt against SHFE 1306 zinc contract prices.