SHANGHAI, Oct 25 (SMM) – The market focus this week should include: Eurozone industrial climate index in October, economic climate index in October, and CPI monthly rate in October in Eurozone.

On events side, the interest rate resolutions of the Eurozone will be announced on this Thursday. Strong winds in Britain and Germany have brought about a substantial increase in wind power generation, easing the power shortages. At the same time, the leaders of the G20 countries have lowered their coal emission reduction targets, helping related market varieties to repair their value. The overseas electricity prices remain as the market focus. If power prices remain high, some smelters would suffer losses. On the other hand, the smelters in India where the coal inventory is at low levels are likely to reduce the output.

LME saw a large amount of deliveries last week, but the delivery location is Singapore, which did not alleviate the shortage of spot cargoes in Europe and the United States. LME zinc still has the risk of squeeze. LME zinc prices are expected to move between $3,360-3,550/mt.

On SHFE zinc, the prices of thermal coal plummeted by 19.33% amid strong control by authorities last week. However, the fundamentals of zinc have not had any essential changes. The output at smelters was at low levels as some smelters cut output on power rationing. Downstream producers reduced restocking amid price fluctuations while the inventory rose to 147,399 mt. The most-traded SHFE contracts are expected to stand at 24,000-25,500 yuan/mt this week, and spot discounts of Shanghai zinc stood at 20-0 yuan/mt over the November contract.