LME Zinc to Rise Slightly Next Week, SMM Says

SHANGHAI, Nov. 13 (SMM) -LME zinc prices are expected to move between $1,580-1,650 per tonne next week, SMM foresees.

“The metal will see technical rebound next week,” said an SMM zinc analyst. “The US dollar will unlikely rise further in the near term now that inflation rate in the US has yet to reach 2%, which means it is still premature for the Federal Reserve to raise interest rates. Besides, the exodus of shorts after profit-taking will also lend some support to zinc.”

Zinc for January delivery on the SHFE will hover between 12,800-13,300 yuan per tonne, the zinc analyst added. In China’s spot markets, most zinc smelters will continue to hold back goods, and traders will also support prices. But supplies will be healthy as a whole on continuous inflows of imported zinc and high inventories, with price spreads widening. As downstream buying interest is expected to remain weak, spot #0 zinc will trade only 200-350 yuan per tonne above January delivery zinc on the SHFE. 

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