SMM Zinc Market Morning Review (2013-10-24)

SHANGHAI, Oct. 24 (SMM) – LME zinc prices overnight opened at USD 1,962/mt, but rolling back early gains during Asian trading hours. The Shanghai Composite Index fell below 2200, depressing market confidence, and pushing down LME zinc prices to USD 1,945/mt, down from USD 1,963/mt. With the lack of solid news, base metals prices fell further during European and US trading hours, with LME zinc prices dipping to USD 1,926/mt, and closing at USD 1,927/mt, down USD 36.5/mt or 1.86%. Trading volumes increased by 2,467 lots, to 11,827 lots, and total positions increased by 2,467 lots, to 289,030 lots. LME zinc inventories fell by 5,050 mt, to 1,045,700 mt.

LME zinc prices are expected to move between USD 1,920-1,950/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,950-15,050/mt, with spot premiums expanding to RMB60-120/mt.