SHANGHAI, Feb. 25 (SMM) – LME zinc started overnight at USD 2,049/mt and then advanced to USD 2,075/mt before ending up USD 26.5/mt, or 1.3% at USD 2,071.5/mt. Trading volumes for three-month zinc on the London Metal Exchange gained 1,539 lots to 7,638 lots, while positions shrank 1,104 to 281,464. LME zinc inventories decreased 4,400 mt to 572,400 mt on Tuesday.
Greece and the euro zone finance ministers agreed on a four-month extension on Greece’s bailout plan. The Greek government submitted a reform and budget plan on Tuesday. This indicates that Greece has temporarily emerged from defaulting risks, which soothed market concern slightly.
The US Federal Reserve chairwoman Janet Yellen revealed that the Federal Open Market Committee (FOMC) will not raise interest rates in the next few meetings, sending US stocks higher across the board.
US S&P/CS20 home price index rose 4.46% YoY in December, a rise higher than expectations and November. The euro zone’s final CPI decreased 0.6% in January, hitting the lowest since 1999.
The US dollar index edged up 0.39%, while the euro fell 0.01% versus the greenback during the Chinese New Year holiday. European and US stocks ended higher. LME base metals were mixed.
LME zinc is expected to move between USD 2,060-2,090/mt, rebounding above the 5-day moving average on Wednesday. SHFE zinc is projected to hover between RMB 15,800-16,000/mt. Spot zinc in China should trade at a RMB 20-60/mt premium to the most active SHFE 1504 zinc contract.
