SMM Zinc Market Morning Review (2013-10-21)

SHANGHAI, Oct. 21 (SMM) – LME zinc prices last Friday opened at USD 1,929/mt, and then hovered around USD 1,928/mt during Asian trading hours. Positive economic data from China lent some support to base metals prices, when combined with the US dollar index dropping below 79.5, LME zinc prices rose to USD 1,948.5/mt during European and US trading. But as the US dollar index edged up later the day and due to the lack of buyers, LME zinc prices fell and closed at USD 1,930/mt, up USD 1.5/mt or 0.08%. Trading volumes decreased by 1,355 lots, to 8,202 lots, and total positions increased by 1,447 lots, to 288,680 lots. LME zinc inventories fell by 4,825 mt, to 1,061,025 mt.

LME zinc prices are expected to move between USD 1,920-1,945/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,930-15,000/mt, with spot premiums between RMB 100-150/mt.