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LME Zinc to Strengthen Next Week

iconFeb 5, 2016 11:53
LME zinc is expected to remain strong and fluctuate between $1,680-1,780 per tonne next week, SMM says.

SHANGHAI, Feb. 5 (SMM) - LME zinc is expected to remain strong and fluctuate between $1,680-1,780 per tonne next week, SMM says.

“Call options are heard to have increased. Meanwhile, the US dollar index should continue to fall on recent sluggish economic indicators from the US, both bolstering base metals,” said one SMM zinc analyst.

April zinc on the SHFE should rise to 14,000 yuan per tonne upon the reopening from the week-long Chinese Year Year holiday in 2016 starting February 7, citing good technical indicators.

China’s spot markets will suspend operation next week. After the holiday, goods releases after delivery will weigh down spot discounts. Demand should be soft immediately following the holiday. In this scenario, spot #0 zinc will trade 250-100 yuan per tonne below March zinc on the SHFE. 

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