Home / Metal News /  / SMM Zinc Market Morning Review (2014-3-7)
SMM Zinc Market Morning Review (2014-3-7)
Mar 7,2014 09:39CST
price review forecast
Source:SMM
LME zinc prices opened at USD 2,108/mt overnight, dipping to USD 2,100/mt during Asian trading hours. During European and US trading hours,

SHANGHAI, Mar. 7 (SMM) – LME zinc prices opened at USD 2,108/mt overnight, dipping to USD 2,100/mt during Asian trading hours. During European and US trading hours, LME zinc prices dropped below USD 2,100/mt level, falling further to USD 2,093.5/mt. European Central Bank maintained interest rates unchanged, in line with market expectations, but pushing up the euro whilst weighing down the US dollar index to a over four-month low. Base metals prices thus found support, with LME zinc prices rallying above USD 2,100/mt, touching an intraday high of USD 2,112/mt, but with increases smallest of all other base metals, and closing at USD 2,110.8/mt, up USD 0.8/mt or 0.04%. Trading volumes decreased by 5,678 lots to 8,706 lots, and total positions increased by 4,866 lots to 315,998 lots. LME zinc inventories grew by 8,150 mt to 760,125 mt.

SHFE 1405 zinc contract prices opened at RMB 15,185/mt on Thursday evening, then edged up with rising LME zinc prices, touching RMB 15,210/mt, and finally closing at RMB 15,210/mt, up RMB 5/mt or 0.03%. Trading volumes decreased by 2,110 lots to 13,972 lots, and total positions increased by 1,178 lots to 120,912 lots.

US February non-farm employment data will be released today, which is not optimistic due to downbeat ADP employment data. LME zinc inventories grew for the first time since January 27, and cash-to-three month backwardation on LME zinc dropped to USD 13/mt, which will weigh down LME zinc prices to USD 2,090-2,120/mt today, and SHFE 1405 zinc contract prices will hover between RMB 15,160-15,260/mt, with spot discounts of RMB 220-250/mt against SHFE 1405 zinc contract prices.
 

LME zinc prices

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news