SMM Zinc Market Morning Review (2013-11-25)

SHANGHAI, Nov. 25 (SMM) – LME zinc prices overnight opened at USD 1,894/mt, and leveled out due to the lack of important news. As Germany’s GDP continued to grow mildly, in line with market expectations, the euro rose further, pushing down the US dollar index to 80.7. The Dow Jones Industrial Average, Standard & Poor’s 500 Index and Nasdaq Composite Index rebounded, driving up LME zinc prices to touch USD 1,911.8/mt, closing at USD 1,910/mt, up USD 17.3/mt. Trading volumes increased by 2,484 lots to 9,003 lots, and total positions increased by 3,878 lots, to 286,000 lots.

LME zinc prices are expected to move between USD 1,900-1,920/mt today, and SHFE 1402 zinc contract prices should hover between RMB 14,900-14,960/mt, with spot premiums of RMB 40-80/mt against SHFE 1401 zinc contract prices.