SHANGHAI, Jan. 29 (SMM) - LME zinc is expected to fluctuate at highs between $1,550-1,630 per tonne next week, but market should be aware of longs closing positions after profit-taking, SMM says. SHFE April zinc should underperform LME zinc and move between $12,700-13,250 per tonne.
“Market sentiment will improve on liquidity releases through open market operation by the People’s Bank of China. Rebound in crude oil will also give a boost to base metals,” said one SMM zinc analyst. “Major economic indicators from the US, including ADP’s employment and non-farm payrolls, slated for release next week, are not promising. This should constrain gains in the US dollar index.”
In China’s spot markets, trading will be sloppy with the nearing of 2016 Chinese New Year holiday and suspension at logistics companies due to the holiday. Spot zinc in Shanghai will trade 100-50 yuan below March zinc on the SHFE.
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