SMM Zinc Market Morning Review (2014-4-11)

SHANGHAI, Apr. 11 (SMM) – LME zinc prices opened at USD 2,023.5/mt overnight. China's March import and export data were downbeat, leaving the market cautious, with LME zinc prices fluctuating between USD 2,020-2,025/mt during Asian trading hours. The US dollar index dropped for five trading days on end, supporting base metals prices to rise. The number of US initial jobless claims last week was 300,000, lower than expectations, and its lowest since May 2007, boosting LME zinc prices to touch USD 2,045/mt, and closing at USD 2,041.5/mt, up USD 19.75/mt. Trading volumes decreased by 348 lots to 7,431 lots, and total positions increased by 4,167 lots to 299,899 lots. LME zinc inventories fell by 3,150 mt to 817,900 mt.

SHFE 1406 zinc contract prices opened high at RMB 14,980/mt on Thursday evening, the highest in the night trading. LME zinc prices lacked ability to rise further during US trading hours, and SHFE 1406 zinc contract prices hovered between RMB 14,955-14,790/mt,  and closing at RMB 14,970/mt, up RMB 55/mt or 0.37%. Trading volumes decreased by 5,074 lots to 4,610 lots, and total positions increased by 38 lots to 62,576 lots.

China's March PPI, CPI and US March PPI will be announced today. LME zinc prices are expected to move between USD 2,030-2,055/mt today, and SHFE 1406 zinc contract prices will hover between RMB 14,920-15,020/mt, with spot discounts of RMB 100-130/mt against SHFE 1406 zinc contract prices.