SMM Zinc Market Morning Review (2013-7-9)

SHANGHAI, Jul. 9 (SMM) – LME zinc prices overnight opened at USD 1,845/mt. The US dollar index fluctuated around 84.5 during Asian trading hours, and LME zinc prices fluctuated between USD 1,840-1,850/mt. During European trading hours, as additional bailout for Greece was approved, European stocks closed up, and the US dollar index fell, boosting LME zinc prices to break through all moving averages, touching USD 1,878/mt, meeting resistance at the 60-day moving average, and finally closing at USD 1,874/mt, up USD 33.3/mt or 1.81%. Trading volumes decreased by 2,050 lots, to 7,425 lots, and total positions decreased by 62 lots, to 268,561 lots. LME zinc inventories fell by 5,025 mt, to 1,030,325 mt.

LME zinc prices will move between USD 1,855-1,885/mt today, and SHFE 1310 zinc contract prices should fluctuate between RMB 14,480-580/mt, with spot premiums against SHFE 1309 zinc contract prices between RMB 80-110/mt.