MELBOURNE, Nov 22 (Reuters) - Zinc rallied by more than 1 percent early in London, tracking strength in Chinese steel prices on expectations that mills will restock following the country's forced production cuts over winter.
FUNDAMENTALS
- LME ZINC: London Metal Exchange (LME) zinc CMZN3 rose 1.4 percent to $3,236 a tonne, the highest since Nov. 11. Prices have also broken through shorter-dated moving averages, sending a buy signal to trend following funds.
- SHFE ZINC: Shanghai Futures Exchange zinc SZNcv1 rallied 2.6 percent while Shanghai rebar SRBcv1 was up 2.2 percent.
- IRON ORE: Chinese iron ore futures had rallied more than 1 percent on Monday, as steel prices recovered after a three-day slide.
- ZINC FUNDAMENTALS: Zinc was also supported by tightening fundamentals. The global zinc market deficit widened to 39,800 tonnes in September from a revised deficit of 38,700 tonnes in August, data from the International Lead and Zinc Study Group (ILZSG) showed.
- COPPER: LME copper CMCU3 edged up by 0.2 percent to $6,922.50 a tonne by 0157 GMT, extending 1.2 percent gains from the previous session the highest since Nov. 7 Shanghai copper SCFcv1 rallied 1.6 percent to 54080 yuan ($8,156) a tonne.
- FEDERAL RESERVE: The Federal Reserve is "reasonably close" to its goals and should keep gradually raising U.S. interest rates to avoid the dual pitfalls of letting inflation drift below target for too long, and of driving unemployment down too far, Fed Chair Janet Yellen said on Tuesday.
- NICKEL: Nickel also used by the steel sector, retreated 0.7 percent following gains of near 2 percent in the previous session.
- CHINA PROPERTY: China will step up financial regulation and crack down on speculation in the property market to stabilise prices and fend off bubble risks, state television CCTV reported on Tuesday, signalling renewed efforts to rein in risks from a rapid build-up in debt in the economy.
- For the top stories in metals and other news, click [TOP/MTL] or [MET/L]
MARKETS NEWS
- Asian shares scaled a fresh decade peak on Wednesday thanks to surging markets in Europe and America, as strong global growth and rising corporate profits lured hordes of investors into equities. [MKTS/GLOB]
DATA AHEAD (GMT) 1330 U.S. Durable goods Oct 1330 U.S. Weekly jobless claims 1500 Euro zone Consumer confidence flash Nov 1900 U.S. Federal Reserve releases minutes from Oct.31-Nov.1 policy meeting PRICES BASE METALS PRICES 0146 gmt Three month LME copper CMCU3 6921.5 Most active ShFE copper SCFcv1 54060 Three month LME aluminium CMAL3 2090 Most active ShFE aluminium SAFcv1 14965 Three month LME zinc CMZN3 3223 Most active ShFE zinc SZNcv1 25675 Three month LME lead CMPB3 2477 Most active ShFE lead SPBcv1 18890 Three month LME nickel CMNI3 11765 Most active ShFE nickel SNIcv1 95150 Three month LME tin CMSN3 19400 Most active ShFE tin SSNcv1 142880 BASE METALS ARBITRAGE LME/SHFE COPPER LMESHFCUc3 453.53 LME/SHFE ALUMINIUM LMESHFALc3 -1130.02 LME/SHFE ZINC LMESHFZNc3 400.77 LME/SHFE LEAD LMESHFPBc3 -912.32 LME/SHFE NICKEL LMESHFNIc3 2431.53 ($1 = 6.6307 Chinese yuan renminbi)
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Top Base and Precious Metals Analysis - GFMS http://tmsnrt.rs/2lvmIzW^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
