2010/4/26 Zinc Market

LME three-month zinc contract prices closed at USD 2,415/mt last Friday. Market concerns over Greece debt crisis and Moody's Investors Service's move to downgrade its rating of Greek government debt caused market risk appetite to shift. In addition, the US economic data shows the number of initial claims for jobless benefits declined and home sales increased, indicating the US economy was recovering. However, the US dollar strengthened as a result, weighing down base metals prices. World Bureau of Metal Statistics released that global base metals were still in excessive supply, and China’s zinc stocks remained high, generating market concerns over China's zinc supply surplus. However, LME zinc prices were still stronger than domestic zinc prices, and SMM predicts the situation of strong LME zinc prices and weak SHFE zinc prices will remain unchanged in the short term, and SHFE zinc prices will likely continue to fluctuate between RMB 19,000-19,500/mt. 

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